CryptoQuant CEO: Stricter Regulations May Give Rise to "Dark Stablecoins"

Ki Young Ju, founder and CEO of CryptoQuant, stated on the X platform that "dark" stablecoins are likely to emerge in the future. Stablecoins act as a bridge between the internet and the real world, thus requiring management. So far, companies like Tether and Circle have achieved this by depositing cash reserves in banks. Apart from combating money laundering activities, governments have not truly intervened in stablecoins, allowing them to be used by various groups, including miners, as a safe asset storage place.

However, this situation is changing, and stablecoins may face strict government regulation, similar to traditional banks. Those using stablecoins for large international transfers may start looking for "dark stablecoins" that can withstand censorship. There are two ways to create dark stablecoins: algorithmic stablecoins not controlled by the government and state-issued stablecoins that do not censor financial transactions.

USDT itself was once considered a censorship-resistant stablecoin. If Tether chooses not to comply with U.S. government regulations under a future Trump administration, it may become a dark stablecoin in the increasingly censored internet economy.