South Korean Budget Office Warns Stablecoins Could Save Merchants Billions

stablecoins could save — South Korea’s National Assembly Budget Office has published a report stating that stablecoin adoption could save domestic merchants up to $3.8 billion annually in transaction fees.

The report, released Tuesday, highlights the potential for stablecoins to significantly reduce payment processing costs for businesses by bypassing traditional financial intermediaries. It suggests this efficiency could lead to lower prices for consumers.

However, the budget office also issued a cautionary note, warning that widespread stablecoin use could diminish the role of banks as credit intermediaries. It further flagged the risk of potential peg destabilization during periods of mass redemptions, posing a financial stability concern.

The analysis underscores the dual-edged nature of digital asset innovation, balancing substantial economic benefits against new systemic risks that may require regulatory oversight.