Cardano is preparing a private stablecoin: an alternative to cash in the digital world

Hoskinson emphasized that digital currencies should provide users with the same degree of privacy as regular cash. According to him, people do not want their every action online and offline to be constantly monitored.

However, this approach raises concerns among regulators. In particular, the European Union has already announced plans to restrict access to private cryptocurrencies such as Monero and Zcash on centralized exchanges from 2027. This creates serious obstacles to the implementation of fully anonymous solutions within the legal framework.

Hoskinson proposed a compromise - the introduction of "selective disclosure" technology. Such a mechanism will allow regulatory authorities to access the necessary data during investigations and anti-money laundering control, but will not disclose full information about transactions to the general public. This will ensure a balance between user privacy and compliance with legal requirements.

He also noted that for the project to be successful, it is necessary to find the right combination of technology and legal norms. “We are committed to making Cardano the world’s first platform where a stablecoin will appear that combines privacy and compliance with regulatory requirements,” Hoskinson said.

At the same time, legislative battles around the regulation of stablecoins continue in the United States. Thus, recently a bill called the GENIUS Act, aimed at creating a framework for the circulation of such digital assets, did not pass a vote in the Senate. This suggests that the regulation of stablecoins remains a controversial issue even at the level of the largest economies.

Thus, the Cardano initiative may become an important step towards the creation of digital currencies that combine convenience, privacy and legality.