The censorship-resistant “Dark Stablecoins” may come with increasing demand as governments are tightening their industry administration.
Stablecoins were used for various groups to store property -owners due to lack of government interruption; However, in pending regulations, which may change as soon as possible, Ki Young Ju, CEO of the Crypto Analytics Firm Cryptoquant, Says In a post of May 11 x.
“Soon, any stablecoin issued by a country could deal with strict GovT regulation, similar to traditional banks. Transfers can automatically trigger a tax collection through smart contracts, and purses can frost or require paperwork based on government policies,” said.
“People who use stablecoins for Big International Transfers can start searching for censorship-resistant dark stablecoins.”
On the heels of US president Donald Trump’s The administration of crypto-friendly assumed power Earlier this year, lawmakers weighed Stablecoin law, aimed at repairing US stablecoins, ensuring their legal use for payments.
The European Union has already brought its its Markets in crypto-assets (MICA) regulation, which, among other steps, mandate that stablecoins are regulated and transparent.
Ju thought that a dark or private stablecoin could be Created as an algorithmic stablecoin.
“A possible example can be a decentralized stablecoin that complies with the price of regulated coins such as the USDC using oracle data such as chainlink,” he said.
Another way is the stablecoins released by countries that do not censor financial transactions, or, for example, if Tether chooses not to comply with US government regulations in the future.
“The USDT itself is considered a censorship-resistant stablecoin. If Tether chooses not to comply with US government regulations under a future Trump management, it can be a dark stablecoin in an increasingly-censor Internet economy,” Ju said.
Crypto privacy technology is already in use
Zcash (ZEC) and Monero (Xmr) – While they are not stablecoins – shield transactions and allow users to send and receive funds without announcing their blockchain transaction data.
Related: Russia Finance Ministry Official Floats Country doing its own stablecoins: Report
Many projects are also working on the use of similar technology for stablecoins, such as the Zephyr Protocol, a Monero Fork that hides transactions from the revealed blockchain. Parscoin also hides user identities, transaction values, and links to previous transactions.
US dollar-denominated stablecoins market cap continued to grow, crossing $ 230 billion in April, a Report from investment banking giant Citigroup Found. That has been an increase of 54% since last year, with Tether (USDT) and USDC (USDC) dominant in 90% of the market.
Meanwhile, the total volume of Stablecoin hit $ 27.6 trillion in 2024, which exceeded the combined Visa and MasterCard volumes of 7.7%.
Magazine: Funny ‘Chinese Mint’ Crypto Scam, Japan Dives into Stablecoins: Asia Express
