Governments worldwide are increasing regulations on stablecoins, prompting some users to consider using 'dark' or private stablecoins to avoid censorship and control.
Algorithmic stablecoins, which rely on code to maintain their peg, face risks such as sudden collapses, as seen in the case of UST in 2022.
Privacy coins like Zcash and Monero have existed for years, allowing users to conceal transaction details. Newer initiatives aim to obscure stablecoin transactions on the blockchain for enhanced privacy.
The stablecoin market continues to expand, with US dollar-denominated stablecoins reaching over $230 billion in market capitalization. While regulated stablecoins are preferred by businesses and institutions for compliance, 'dark' stablecoins may find a niche for cross-border transactions.