Can government control promote underground stablecoins?

* According to the founder of CryptoQuant, 'dark stablecoins' could be a solution to the increasing control of the government over traditional digital currencies.

• The reactions from the community are very diverse; some support it, while others argue that Bitcoin is a better option.

The founder of CryptoQuant, Ki Young Ju, has predicted the emergence of a censorship-resistant ‘dark stablecoin’ in the future.

Young Ju believes that government control pressures on stablecoins like Circle's USDC and Tether's USDT could drive the scenario of 'stablecoin darkness.'

Source: X

Bitcoin vs Stablecoin

According to Young Ju, the pioneers of Bitcoin [BTC] embraced it due to its censorship-resistant features.

However, the intermediaries involved in stablecoins will have regulations that will make it difficult for traditional digital currencies to escape government control.

Mr. predicts that the 'dark stablecoin' could be 'algorithmic' or issued by countries that do not implement financial controls.

He mentioned Tether's USDT as a potential candidate for the 'ultimate stablecoin' if the company chooses not to comply with U.S. law.

"USDT was once considered a censorship-resistant stablecoin. If Tether chooses not to comply with the regulations of the US government under the future Trump administration, it could become a dark stablecoin in an increasingly censored network economy."

It should be noted that the stablecoin bills in the United States, particularly the GENIUS Act from the Senate, propose strict controls over domestic digital currency issuers for national security and consumer safety purposes.

This includes a feature that restricts access to digital currency if the recipient is on the government's blacklist.

Young Ju's viewpoint has caused mixed reactions. Some support this idea, with one user calling traditional stablecoins a 'bottleneck for BTC'.

"Stablecoin is a bottleneck for Bitcoin, just like any third-party intermediary. Europe has tightened access to Bitcoin through stablecoin regulation. And, the United States is also gradually exerting more control over USDT traffic. I agree, we need stablecoin for the night!"

However, others believe that BTC is good enough and does not need an additional 'dark stablecoin'.

Stablecoin is a cryptocurrency that is pegged to other digital or traditional currencies such as USD, Euro, or commodities like gold.

As of May 25, the US dollar stablecoin is dominant in this segment.

Tether's USDT and Circle's USDC account for over 90% of the market share. From a stablecoin market size of 242 billion USD, USDT (149.9 billion USD) and USDC (60 billion USD) account for 209 billion USD.

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