DAI exists and is not able to be frozen, but if the merchant's AI system flags a bitcoin transaction do you think you'll be able to cash that out? Just because they can't block it at the protocol level that doesn't mean they'll sign the transaction to send it to you.
replyTIL DAI cannot be frozen. Perhaps the first stablecoins I might be a little interested in.
replyThe merchant should send the funds (sweep the UTXO) back to you if the funds are flagged. So you should not be out of pocket.