From Cointelegraph

May 11, 2025 10:55 PM:

Governments cracking down on stablecoins could lead to a demand for “dark stablecoins” that are resistant to censorship. Regulations are being considered in the US, while the EU has already implemented strict rules for stablecoins. These could include automatic tax collection and wallet freezes based on government rules.

Crypto analyst Ki Young Ju suggests creating a dark stablecoin that is algorithmic, maintaining value through mechanisms rather than being pegged to an external asset. Options include decentralized stablecoins tracking regulated coins like USDC using data oracles, or stablecoins issued by countries that don’t censor financial transactions.

Privacy technology like Zcash and Monero already protect transactions, and newer projects like Zephyr Protocol and PARScoin are working on similar features for stablecoins. The market cap of US dollar-denominated stablecoins has surpassed $230 billion, with Tether and USDC dominating 90% of the market. Total stablecoin volumes hit $27.6 trillion in 2024, outpacing Visa and Mastercard combined.

Read more at Cointelegraph: ‘Dark stablecoins’ could emerge as regulations tighten