In a recent post, he noted, “In the near future, strict government regulation could apply to any stablecoin issued by a country, much like traditional banks. Transfers may trigger automatic tax collection via smart contracts, and wallets could be frozen or require paperwork according to government regulations.”

He further added that users who rely on stablecoins for large international transfers may turn to censorship-resistant shadow stablecoins.

With the recent assumption of power by the crypto-friendly administration of former US President Donald Trump, lawmakers are considering stablecoin legislation that would regulate US stablecoins for legal payment use. The European Union has already put into effect its Markets in Crypto-Assets (MiCA) regulation, which mandates that stablecoins be regulated and transparent.

Ju suggests that a shadow or private stablecoin could be created as an algorithmic stablecoin, with its value maintained via algorithmic mechanisms, making it less vulnerable to authority interference. “A potential example could be a decentralized stablecoin tracking the price of regulated coins like USDC using data oracles like Chainlink,” he said.

Another possibility is stablecoins issued by countries that do not censor financial transactions, or if Tether decides to defy US government regulations in the future. “Tether used to be a censorship-resistant stablecoin. If it chooses not to comply with US government regulations under a future Trump administration, it could transform into a shadow stablecoin in an increasingly regulated internet economy,” Ju noted.

Cryptocurrencies like Zcash (ZEC) and Monero (XMR) are already employing privacy technology. Although they aren’t stablecoins, they still mask transactions and allow users to send and receive funds without revealing their transaction data on the blockchain. Several projects, including Zephyr Protocol and PARScoin, are working on applying similar technology to stablecoins.

The market cap of US dollar-denominated stablecoins has been steadily growing, exceeding $230 billion in April, as reported by Citigroup. This marks a 54% increase from the previous year, with Tether (USDT) and USDC (USDC) accounting for 90% of the market. In 2024, total stablecoin volumes reached $27.6 trillion, surpassing the combined volumes of Visa and Mastercard by 7.7%.

The post “Rise of ‘Shadow Stablecoins’ Anticipated as Crypto Regulations Tighten” appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

Shiba Inu (SHIB) made a striking recovery over the weekend, defying the bearish performance that plagued the broader crypto market. SHIB’s price took a hit on June 5, breaking down from a long-standing symmetrical triangle pattern that lasted a whopping 350 days. Breakdowns from such prolonged structures typically lead to substantial downward movements.

However, by June 10, the SHIB price hit a low of $0.000000540 before promptly bouncing back, indicating significant buying pressure. Although SHIB is still trading below the $0.00000800 horizontal level, which previously offered support, the tide seems to be turning. Whether SHIB breaches this level or experiences rejection will likely dictate the trend’s trajectory.

Zcash (ZEC) Soars Towards Key Resistance Level

Zcash (ZEC) is another altcoin making impressive strides, recovering strongly after a steep drop on June 10 to a low of $21.70. The quick rebound demonstrates robust buying pressure.

Presently, ZEC is moving closer to a descending resistance line that has been in place since late May. This line aligns with the 0.382 Fibonacci retracement resistance level at $26.60, indicating a critical point. Should the ZEC price break this level, it might lead to a surge towards $29. Conversely, a rejection could see the price dropping back to $21.60 or potentially lower.

XRP Poised for Potential Breakout

The XRP price has been in a decline since reaching a high of $0.56 on June 13. Despite what initially appeared to be a breakout from the $0.54 resistance zone, the price was unable to maintain its upward momentum, hinting at strong selling pressure.

However, if XRP can manage to exceed the $0.56 high, the trend could still prove to be bullish, with the possibility of the price advancing to $0.65. Otherwise, a bearish trend could potentially drive XRP down to the $0.38 level.

The post The Top 3 Altcoins Rallying the Market Over the Weekend appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.