Hoskinson Says Cardano Could Be First Blockchain to Develop and Launch Privacy Stablecoin

Cardano founder Charles Hoskinson explores the possibility of developing a privacy-enabled stablecoin on the Cardano network.  Speaking in a recent interview on the Conversations with Leaders podcast, Hoskinson hinted at plans to develop a privacy stablecoin on Cardano. According to him, traditional stablecoins have the inherent flaw of publicizing every transaction on the blockchain, making them traceable.  He asserted that some users may not be comfortable with traditional stablecoins due to their lack of privacy. Therefore, he suggested that users might want a privacy-enabled stablecoin that keeps their purchases discreet.  How Privacy Stablecoins Can Comply with Regulatory Demands  Notably, the Cardano founder proposed an initiative he termed ‘selective disclosure and season freeze regime’ for stablecoins. He suggested that these solutions would enable users to shield their stablecoin-related transactions, including counterparties and amounts, from the public.  Despite this, regulators can still access these transactions through a regulatory directive or court order. However, it will not sabotage the privacy model of the stablecoins.  Further, Hoskinson echoed his support for privacy stablecoins with selective disclosure, adding that Cardano might be the first blockchain to roll out one.  Thanks to its privacy-focused sidechain, Midnight, Cardano could become one of the first blockchains to launch a stablecoin that keeps users’ transactions private.  Current State of the Stablecoin Market  The stablecoin market has grown tremendously over the years, boasting a valuation of $245.61 billion. Most of the leading stablecoins, such as USDT and USDC, are currently available on blockchains like Ethereum, Tron, and Solana.  Cardano also supports a handful of stablecoins, like DJED, USDA, and USDM. According to data from DeFiLlama, stablecoins on the Cardano network have a combined market cap of $31.69 million.  At the moment, transactions involving these stablecoins, including those on Cardano and Ethereum, are visible on the blockchain.  Hoskinson believes some users might not be comfortable with this lack of privacy, so he is considering introducing a privacy-enabled stablecoin with selective disclosure functionality.  Regulatory Concerns Over Privacy Stablecoins  Meanwhile, regulators have remained cautious about privacy-focused projects like Monero and Zcash. Although these projects have tried to balance regulatory demands with user privacy, multiple crypto exchanges, including Binance and OKX, have delisted them from their platforms.  The EU recently prohibited exchanges and custodial platforms from engaging with privacy-focused tokens and anonymous wallets starting July 1, 2027.  In the United States, lawmakers failed to pass the highly anticipated stablecoin regulation, the GENIUS Act, due to financial stability concerns. Despite this regulatory bottleneck, Hoskinson believes a privacy-enabled stablecoin on Cardano is possible.