CryptoQuant CEO Warns of the Rise of “Dark Stablecoins”
The post CryptoQuant CEO Warns of the Rise of “Dark Stablecoins” appeared on BitcoinEthereumNews.com. Ki Young Ju warns of rising demand for “Dark Stablecoins” CryptoQuant CEO predicts growth of algorithmic and unregulated stablecoins USDT could be classified as ‘Dark Stablecoin’ if it fails to meet U.S. regulations Ki Young Ju, the founder and CEO of CryptoQuant, has raised a cautionary flag regarding a possible new development in the crypto world—the rise of so-called “dark stablecoins.” In a recent tweet, he suggested that the development of these stablecoins could happen in the near future because of increased demand for currencies that resist financial censorship. Ju Predicts Rise of Algorithmic and Unregulated Stablecoins According to Ju, such currencies could develop in two ways: first, through algorithmic stablecoins that work without government control. Additionally, they could emerge from countries that do not enforce strict financial regulations. This development signals a wider pattern in the ways that governments and institutions interact with digital assets. Even though Bitcoin was created by the cypherpunk community as a fully decentralized and censorship-resistant network, stablecoins have always operated with a distinct model. These coins act as a bridge between digital currencies and the real economy, so they depend on central oversight to maintain their peg to existing monetary systems, achieved primarily through the use of reserve bank accounts. The firms Tether and Circle are instrumental in the issuance of stablecoins, and these have grown in popularity because governments have largely overlooked them, with the exception of cases related to money laundering or fraud. Of course, regulatory trends are changing rapidly. Increasingly, governments are approaching stablecoins with the same regulatory view as traditional financial tools. New regulations may restrict how people use stablecoins. For example, smart contracts could collect taxes on transactions. Users may also need to provide paperwork to manage their digital wallets. As a result, the popularity of traditional stablecoins among…
The post CryptoQuant CEO Warns of the Rise of “Dark Stablecoins” appeared on BitcoinEthereumNews.com.
Ki Young Ju warns of rising demand for “Dark Stablecoins” CryptoQuant CEO predicts growth of algorithmic and unregulated stablecoins USDT could be classified as ‘Dark Stablecoin’ if it fails to meet U.S. regulations Ki Young Ju, the founder and CEO of CryptoQuant, has raised a cautionary flag regarding a possible new development in the crypto world—the rise of so-called “dark stablecoins.” In a recent tweet, he suggested that the development of these stablecoins could happen in the near future because of increased demand for currencies that resist financial censorship. Ju Predicts Rise of Algorithmic and Unregulated Stablecoins According to Ju, such currencies could develop in two ways: first, through algorithmic stablecoins that work without government control. Additionally, they could emerge from countries that do not enforce strict financial regulations. This development signals a wider pattern in the ways that governments and institutions interact with digital assets. Even though Bitcoin was created by the cypherpunk community as a fully decentralized and censorship-resistant network, stablecoins have always operated with a distinct model. These coins act as a bridge between digital currencies and the real economy, so they depend on central oversight to maintain their peg to existing monetary systems, achieved primarily through the use of reserve bank accounts. The firms Tether and Circle are instrumental in the issuance of stablecoins, and these have grown in popularity because governments have largely overlooked them, with the exception of cases related to money laundering or fraud. Of course, regulatory trends are changing rapidly. Increasingly, governments are approaching stablecoins with the same regulatory view as traditional financial tools. New regulations may restrict how people use stablecoins. For example, smart contracts could collect taxes on transactions. Users may also need to provide paperwork to manage their digital wallets. As a result, the popularity of traditional stablecoins among…
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