Stricter regulation and censorship of the crypto industry by governments could lead to a demand for ‘dark stablecoins’, according to CryptoQuant CEO Ki Young Ju.
Governments, except in cases of combating money laundering, have largely refrained from interfering in the stablecoin segment. This makes these assets useful for various groups as a safe way to store funds.
“But everything is changing. Soon, any stablecoin issued by a country may face strict government regulation, similar to traditional banks. Transfers could automatically trigger tax collection through smart contracts, and wallets might be frozen or require documentation based on established rules,” the expert believes.
In this scenario, people using assets for large international transfers might turn to censorship-resistant ‘dark stablecoins’, the head of CryptoQuant suggests.
These could include coins with algorithmic pegs or those issued by countries that do not subject transactions to scrutiny.
“One possible example could be a decentralized stablecoin that tracks the price of regulated coins like USDC, using data oracles such as Chainlink,” Ki Young Ju speculated.
USDT could also become a ‘dark stablecoin’ if Tether decides not to comply with US government regulations, the expert suggested.
