The global supply of stablecoins can influence local currency inflation or deflation policies indirectly. Stablecoins, pegged to assets like the USD, increase liquidity in digital markets, potentially affecting currency demand. If widely adopted, they may reduce reliance on local currencies, weakening central banks' control over monetary policy. A surge in stablecoin supply could mimic an expansionary effect, increasing spending and potentially fueling inflation in economies tied to the pegged currency. Conversely, a contraction in stablecoin supply might exert deflationary pressure by reducing available liquidity. However, the impact depends on adoption scale, local economic conditions, and regulatory responses. Central banks may adjust policies to counter these effects, but stablecoins’ decentralized nature complicates direct intervention.