Tether in Iran and Venezuela Shows the Two-Sided Reality of Stablecoins
This article was first published on The Bit Journal.
Stablecoins were meant to behave like cash, yet they now act like payments infrastructure. In countries under strain, a dollar-pegged token can help people protect savings and settle bills when local banks are distrusted. The same reach can also move value for sanctioned actors who are supposed to be cut off from global finance. Recent reporting connected to Iran and Venezuela captures that dual use.
Why digital dollars keep getting adopted
In both countries, stablecoin demand often comes from practical budgeting rather than speculation. Tether USDT offers a familiar unit of account, works in a phone wallet, and settles quickly across borders. Fees matter, so users gravitate toward low-cost networks, and reporting has described Tron-based Tehter USDT as widely used in Iran for that reason.
Iran has also tried to put limits around the trend. In late September 2025, reported rules set a $5,000 annual cap on stablecoin purchases per user and a $10,000 ceiling on holdings, with a short transition period for those already above the limit.
The sanctions dilemma, spelled out on-chain
A blockchain investigations report described how two UK-registered entities, Zedcex and Zedxion, allegedly moved more than $1 billion in stablecoins for the Iranian Revolutionary Guard Corps since 2023, with activity leaning heavily on Tether USDT running on Tron. The report characterized the entities as coordinated financial infrastructure rather than a pair of unrelated venues.
Separate reporting echoed the same findings and highlighted the compliance challenge: repeated, high-volume routing can resemble normal commerce when transfers are structured like standard business payments. That is why enforcement tends to focus on patterns, counterparties, and volume over time.
Venezuela: everyday utility and trade spillover
Venezuela shows stablecoins as informal money in daily life. Reporting has described USDT being used for routine services, with wallet transfers substituting for bank payments in some cases. The same reporting said the state oil company began requesting USDT payments to reduce sanctions friction that started in 2020, and it cited an estimate that 80% of oil revenue is accepted via the stablecoin.
The market indicators that matter more than the peg
Tether USDT aims to stay near $1, so the more useful signals are activity and enforcement. Network concentration is one indicator, since heavy stablecoin volume on a low-fee chain can reflect real payment demand, yet it can also create an efficient corridor for illicit routing. Issuer intervention is another signal worth tracking.
An on-chain study published in December 2025 found that from 2023 through 2025, USDT blacklisted 7,268 addresses and froze about $3.29 billion, including $1.75 billion on Tron. Those numbers show a basic tradeoff: stablecoins scale because they feel frictionless, but they also remain subject to issuer controls that can be activated under legal and law-enforcement pressure.
Conclusion
Iran and Venezuela make the stablecoin debate feel like infrastructure policy. For civilians, Tether USDT can preserve value and enable payments when local money weakens. For sanctioned actors, the same system can provide a fast settlement layer that reduces reliance on bank rails. As stablecoins expand, the industry conversation is likely to move toward tighter screening at on-ramps and better monitoring of high-risk flows, because trust depends on keeping the lifeline while limiting the abuse.
FAQs
What is a stablecoin?
A token designed to track a reference asset, usually the US dollar.
Why do people use USDT in crisis economies?
To save and pay in a dollar-linked balance when local currency loses value.
Can USDT be frozen?
Yes, the issuer can blacklist addresses and freeze funds.
Why does Tron show up so often in USDT stories?
It is widely used because transfers are fast and relatively low cost.
Glossary of key terms
Blacklisting: Marking wallet addresses so the stablecoin cannot be moved or redeemed.
On-chain flows: Token movements recorded on a blockchain, used to analyze demand and risk.
Sanctions evasion: Moving value in ways meant to bypass restrictions imposed by authorities.
References
washington/post
tradingview
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