Dark Stablecoins May Emerge as Crypto regulations Tighten
CryptoQuant CEO Ki Young Ju predicts the rise of ādark stablecoinsā as governments increase their scrutiny of digital currencies. In a recent post, Ju explained why censorship-resistant stablecoins could become essential.
Bitcoin, created by the cypherpunk community, is inherently censorship-resistant. However, stablecoins require centralized management to connect digital adn traditional finance. This makes them vulnerable to government regulations.
Stablecoins like Tether and Circle have operated with little government interference, serving as a safe haven for groups like Chinese miners. But Ju believes this could change. He predicts that government-issued stablecoins will face regulations similar to traditional banking, including automatic tax collection and wallet freezes.
These changes may push users to seek censorship-resistant alternatives. Ju suggests two options: algorithmic stablecoins not controlled by governments and stablecoins from countries that donāt censor financial transactions.
One technical solution could be decentralized stablecoins that track regulated coins like USD Coin using oracle networks such as Chainlink (LINK). though, Ju hasnāt found projects that have successfully implemented this model.
Interestingly, Ju thinks USDT could become a dark stablecoin if it doesnāt comply with future U.S. regulations. He believes dark assets might offer investment opportunities in internet capital markets.
