‘Dark’ Stablecoins On The Horizon? CEO Warns Of Danger
The post ‘Dark’ Stablecoins On The Horizon? CEO Warns Of Danger appeared on BitcoinEthereumNews.com. Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure Governments worldwide are clamping down on stablecoins. That might push some users to turn to so-called “dark” or private stablecoins. They offer uncensorable transfers, but they come with high risks and uncertain practical application. Tighter Rules Might Spook Users Away Stablecoins from a country could soon have the same regulations as banks, says CryptoQuant CEO Ki Young Ju. Transfers could even automatically initiate tax collection via smart contracts. Wallets may even be frozen or need additional paperwork. That’s prompting some traders to seek alternatives. They seek tokens that can’t be traced or halted by governments. Dark stablecoins are likely to emerge in the future.#Bitcoin was created by the cypherpunk community to be censorship-resistant and belongs to no one, making it impossible to control. Stablecoins, however, act as a bridge between the internet and the real world, so they need… — Ki Young Ju (@ki_young_ju) May 11, 2025 Algorithmic Stablecoins Face Risks One concept is an algorithmic stablecoin that maintains its peg by code instead of holding dollars or gold. It might track the price of a regulated coin such as USDC via oracles from Chainlink. But history shows these designs can fail. In 2022, the UST peg collapsed in hours. A market shock or an oracle failure might leave holders with tokens worth a few cents. Trust is difficult to regain once it has been lost. Privacy Coins Already In Circulation Privacy tech is not new to cryptocurrency. Cryptocurrencies like Zcash and Monero allow users to conceal transaction values and sender addresses. They have existed for years but are frequently subject to additional verification on exchanges. Total crypto market cap currently at $3.32 trillion. Chart: TradingView Newer initiatives like Zephyr Protocol, a fork of Monero, will obscure…
The post ‘Dark’ Stablecoins On The Horizon? CEO Warns Of Danger appeared on BitcoinEthereumNews.com.
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure Governments worldwide are clamping down on stablecoins. That might push some users to turn to so-called “dark” or private stablecoins. They offer uncensorable transfers, but they come with high risks and uncertain practical application. Tighter Rules Might Spook Users Away Stablecoins from a country could soon have the same regulations as banks, says CryptoQuant CEO Ki Young Ju. Transfers could even automatically initiate tax collection via smart contracts. Wallets may even be frozen or need additional paperwork. That’s prompting some traders to seek alternatives. They seek tokens that can’t be traced or halted by governments. Dark stablecoins are likely to emerge in the future.#Bitcoin was created by the cypherpunk community to be censorship-resistant and belongs to no one, making it impossible to control. Stablecoins, however, act as a bridge between the internet and the real world, so they need… — Ki Young Ju (@ki_young_ju) May 11, 2025 Algorithmic Stablecoins Face Risks One concept is an algorithmic stablecoin that maintains its peg by code instead of holding dollars or gold. It might track the price of a regulated coin such as USDC via oracles from Chainlink. But history shows these designs can fail. In 2022, the UST peg collapsed in hours. A market shock or an oracle failure might leave holders with tokens worth a few cents. Trust is difficult to regain once it has been lost. Privacy Coins Already In Circulation Privacy tech is not new to cryptocurrency. Cryptocurrencies like Zcash and Monero allow users to conceal transaction values and sender addresses. They have existed for years but are frequently subject to additional verification on exchanges. Total crypto market cap currently at $3.32 trillion. Chart: TradingView Newer initiatives like Zephyr Protocol, a fork of Monero, will obscure…
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