A South Korean government official has revealed that approximately 10% of domestic trade transactions in the country are conducted using stablecoins, with Tether (USDT) being the most popular. Stablecoins are appealing to traders in South Korea due to their low fees, fast transaction speeds, and the ability to bypass strict foreign exchange regulations. Notably, USDT holds a 72% share of the stablecoin market, with most transactions occurring on the TRON blockchain rather than Ethereum. TRON-based USDT is preferred for its lower transaction fees and faster processing speeds. While stablecoins offer benefits to businesses, regulators are concerned about the complexity of tracking the flow of funds and the potential impact on national trade and capital flow statistics. There are also worries about the conversion of South Korean assets into stablecoins during times of economic volatility, which could threaten the nation's foreign currency reserves and monetary sovereignty.



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