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The Coin Rise 2025-05-12 10:10:34

‘Dark Stablecoins’ Emerge as a Looming Trend Amid Regulatory Tightening: Expert

With governments ramping up their efforts to monitor and control digital asset flows, crypto analysts are warning that demand may soon rise for “dark stablecoins” — decentralized, censorship-resistant alternatives designed to sidestep oversight. According to Ki Young Ju, CEO of blockchain analytics firm CryptoQuant, the era of unregulated stablecoin transfers may be drawing to a close. In a post on X dated May 11, Ju noted that as regulators tighten their grip, stablecoins issued under government authority could become as restrictive as traditional financial systems. “Soon, any stablecoin issued by a country could face strict govt regulation, similar to traditional banks,” he warned, adding that users may face automatic tax enforcement, wallet freezes, or even administrative hurdles triggered by smart contract conditions. For individuals or businesses using stablecoins to move funds across borders, that looming reality may drive them to seek alternatives that promise greater privacy and autonomy. What are Dark Stablecoins? Ju’s insights tap into a growing tension in the crypto space: the need for both financial stability and transactional freedom. He envisions a scenario where new forms of dark stablecoins — likely backed not by traditional assets, but by algorithmic or synthetic mechanisms — could fill the void left by regulatory clampdowns. “A possible model could involve decentralized stablecoins pegged to assets like USDC via data oracles such as Chainlink,” he proposed. Such systems, by avoiding central custody and direct fiat backing, would be less susceptible to freezing or censorship by authorities. There’s also the possibility of dark stablecoins emerging from jurisdictions that don’t impose financial censorship — or from existing players like Tether, should they choose to diverge from U.S. compliance. Ju even suggested that USDT, which once held a reputation for censorship resistance, could reclaim that role under a regulatory-resistant stance in the future. Privacy Tools Already in Play Though the term “dark stablecoin” is new, the underlying privacy technology isn’t. Privacy coins like Monero (XMR) and Zcash (ZEC) already use cryptographic shielding to obscure transaction details. Inspired by these models, newer projects such as Zephyr Protocol and PARScoin are building privacy-preserving stablecoins that conceal identities, transaction amounts, and wallet histories. As the market continues to expand — with stablecoin capitalization exceeding $230 billion as of April and annual volumes eclipsing those of Visa and Mastercard. The post ‘Dark Stablecoins’ Emerge as a Looming Trend Amid Regulatory Tightening: Expert appeared first on TheCoinrise.com .

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