{"id":129045,"date":"2025-05-12T03:15:33","date_gmt":"2025-05-12T03:15:33","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=129045"},"modified":"2025-05-12T03:15:33","modified_gmt":"2025-05-12T03:15:33","slug":"dark-stablecoins-could-emerge-as-regulations-tighten","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=129045","title":{"rendered":"\u2018Dark stablecoins\u2019 could emerge as regulations tighten"},"content":{"rendered":"<p>Source: Cointelegraph.com NewsCensorship-resistant \u201cdark stablecoins\u201d could come in increasing demand as governments tighten their oversight of the industry.\u00a0<br \/>\nStablecoins have been used for various groups to store assets due to a lack of government interference; however, with regulations pending, that could soon change, Ki Young Ju, CEO of crypto analytics firm CryptoQuant, said in a May 11 X post.<br \/>\n\u201cSoon, any stablecoin issued by a country could face strict govt regulation, similar to traditional banks. Transfers might automatically trigger tax collection through smart contracts, and wallets could be frozen or require paperwork based on government rules,\u201d he said.<br \/>\n\u201cPeople who used stablecoins for big international transfers might start looking for censorship-resistant dark stablecoins instead.\u201d<br \/>\nOn the heels of US President Donald Trump\u2019s crypto-friendly administration assuming power earlier this year, lawmakers are weighing stablecoin legislation, which seeks to regulate US stablecoins, ensuring their legal use for payments.\u00a0<br \/>\nThe European Union has already brought in its Markets in Crypto-Assets (MiCA) regulation, which, among other measures, mandates that stablecoins be regulated and transparent.<br \/>\nSource: Ki Young JuJu speculates that a dark or private stablecoin could be created as an algorithmic stablecoin, with the value maintained through algorithmic mechanisms rather than being pegged to an external asset like gold, which makes it susceptible to interference from authorities.\u00a0<br \/>\n\u201cOne possible example could be a decentralized stablecoin that follows the price of regulated coins like USDC using data oracles like Chainlink,\u201d he said.<br \/>\nAnother way would be stablecoins issued by countries that don\u2019t censor financial transactions, or, for example, if Tether chooses not to comply with US government regulations in the future.<br \/>\n\u201cUSDT itself used to be considered a censorship-resistant stablecoin. If Tether chooses not to comply with US government regulations under a future Trump administration, it could become a dark stablecoin in an increasingly censored internet economy,\u201d Ju said.<br \/>\nPrivacy technology in crypto is already being used<br \/>\nZcash (ZEC) and Monero (XMR) \u2014 while they aren\u2019t stablecoins \u2014already shield transactions and allow users to send and receive funds without revealing their transaction data on the blockchain.<br \/>\nRelated: Russia finance ministry official floats country making own stablecoins: Report<br \/>\nSeveral projects are also working on using similar technology for stablecoins, such as Zephyr Protocol, a Monero fork that hides transactions from being revealed on the blockchain. PARScoin also hides user identities, transaction values, and links to past transactions.<br \/>\nThe market cap of US dollar-denominated stablecoins has continued to grow, crossing $230 billion in April, a report from investment banking giant Citigroup found. That\u2019s an increase of 54% since last year, with Tether (USDT) and USDC (USDC)\u00a0dominating 90% of the market.<br \/>\nMeanwhile, total stablecoin volumes hit $27.6 trillion in 2024, surpassing the combined volumes of Visa and Mastercard by 7.7%.\u00a0<br \/>\nMagazine: Ridiculous \u2018Chinese Mint\u2019 crypto scam, Japan dives into stablecoins: Asia Express<a href=\"https:\/\/cointelegraph.com\/news\/regulations-spark-censorship-resistant-dark-stablecoins?utm_source=rss_feed&amp;utm_medium=rss&amp;utm_campaign=rss_partner_inbound\" target=\"_blank\" class=\"feedzy-rss-link-icon\" rel=\"noopener\">Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Source: Cointelegraph.com NewsCensorship-resistant \u201cdark stablecoins\u201d could come in increasing demand as governments tighten their oversight of the industry.\u00a0 Stablecoins have been used for various groups to store assets due to&hellip; <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/129045"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=129045"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/129045\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=129045"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=129045"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=129045"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}