The emergence of stable dollar coins could bring significant changes to the global financial market and economy. Compared to traditional fiat-based financial systems, stablecoins utilize blockchain technology to enable fast and efficient transactions, allowing cross-border transactions without the involvement of financial institutions. This characteristic makes stablecoins, especially those based on the U.S. dollar, a potential new standard in international finance and trade, providing the United States with a critical opportunity to further strengthen its dollar hegemony in the global economy.
Dollar Strength and the Expansion of Stablecoins
The strength of the U.S. dollar in the global economy continues to persist, and its effects are becoming increasingly evident. The expansion of stablecoins is likely to further reinforce this dollar strength. As stablecoins gain wider international adoption, global demand for the dollar will inevitably increase. In situations where fiat currency exchange rates fluctuate, businesses and individuals seeking transaction stability will prefer more reliable currencies, making stablecoins an attractive option for easily holding and using dollars. This will accelerate the appreciation of the dollar while causing a depreciation of other national currencies.
Weakening of Financial Sovereignty
These changes could have profound implications for the financial sovereignty of individual nations. Central banks have traditionally regulated their economies through interest rate adjustments and monetary supply control. However, if stablecoins become widely adopted, they would introduce a form of dollar usage that central banks cannot directly regulate. In this scenario, central bank policies, particularly interest rate adjustments, may become less effective in influencing real economies. In financially unstable countries, stablecoins could even become a preferred alternative to domestic currencies. If this trend accelerates, the U.S. dollar will achieve an even more dominant position over fiat currencies, allowing the U.S. government to leverage stablecoin networks to exert even greater economic influence.
Capital Mobility and Changes in Foreign Exchange Policies
The expansion of stablecoins is also likely to increase capital mobility. In the traditional financial system, foreign exchange regulations and capital controls play a crucial role in protecting national economies. However, stablecoins allow capital to move across borders without reliance on financial institutions, making it more challenging for governments to regulate their foreign exchange policies. If the U.S. takes the lead in regulating stablecoins and imposes financial sanctions on certain countries, those countries could become increasingly isolated from the global financial network. For example, countries like Russia and Iran, which face financial sanctions, are attempting to bypass the SWIFT system by developing alternative solutions such as digital yuan transactions. However, if U.S.-led stablecoins become the global financial standard, they could serve as an even more powerful economic weapon than the current dollar-based financial system.
Global Corporations and the Digital Currency Race
Furthermore, if major global corporations begin accepting stablecoins as an official payment method, it will pose a significant challenge to national efforts to develop independent digital currency projects. The European Union’s digital euro, China’s digital yuan, and Russia’s digital ruble are all notable examples. These countries are striving to establish independent payment systems to reduce reliance on U.S. financial sanctions. However, if stablecoins become widely adopted in the market, the global financial network may become even more dependent on the U.S. dollar-based digital financial infrastructure. This would solidify the U.S.’s dominance in the digital dollar economy.
The Impact on South Korea’s Economy and Exchange Rate Volatility
These changes could significantly affect emerging economies, including South Korea. The recent rise in the stablecoin exchange rate to 1,400 KRW per U.S. dollar reflects the impact of U.S. monetary policy and global financial market volatility. If the U.S. stablecoin expansion strategy is fully implemented, the Korean won may depreciate further, with the exchange rate potentially reaching 1,500–1,600 KRW per dollar. While a weaker won may temporarily improve South Korean companies’ export competitiveness, it could also increase the cost of importing raw materials and exacerbate financial instability.
Restructuring of the Global Financial Order
Ultimately, the expansion of stablecoins and the appreciation of the U.S. dollar could lead to a restructuring of the global financial order centered around the U.S. rather than just a simple exchange rate issue. To respond to these changes, countries must actively introduce their own digital currencies and strengthen their financial infrastructure. However, it will be difficult to completely escape the U.S.-dominated financial order, and instead, a new form of economic dependence based on stablecoins may emerge. As a result, the role of stablecoins in the global economy is expected to grow, further solidifying the economic and financial dominance of the United States.
