Complete Guide to Tether’s Role In Venezuela, Iran Highlights The Duality Of Stablecoins

The dual life of stablecoins: A lifeline for citizens and a tool for sanctioned entities involved in Venezuela and Iran's economic crises.

Recent turmoil in Venezuela and Iran has again put the spotlight on the duality of stablecoins, with the US dollar-backed assets such as Tether acting as both a savior for embattled citizens and a tool for blacklisted entities to evade sanctions.

Both Venezuela and Iran have been catching headlines at the beginning of 2026 amid political uncertainty and civil unrest. With both facing a host of sanctions, inflation, political instability, and a cost-of-living crisis, crypto and stablecoins have become an important part of the ecosystem.

Iran has seen protests erupt across the country over the past two weeks in response to worsening economic conditions and the Iranian rial tanking to record lows against the US dollar.

The situation has escalated from local demonstrations to widespread protests across Iran, with thousands arrested and hundreds reportedly killed. Amid this backdrop, the Iranian government also moved to cut off domestic internet access on Thursday.

Crypto and stablecoins have become an important tool for citizens in Iran, given that the Iranian rial has been plummeting in value against the US dollar for decades.

Tron-based Tether (USDT) is reportedly the most utilized asset in the country, with citizens using the asset to hedge inflation and systemic risk.

Broader adoption took a hit in 2025, however, with a hack on the country’s biggest exchange and a significant number of Tether blacklistings. Meanwhile, the government also set an annual limit on stablecoins in late September, allowing citizens max holdings of $10,000 and max purchases of per person $5,000.

But stablecoins have also been used by sanctioned entities. A report from blockchain analytics firm TRM Labs on Friday indicates that since 2023, Iran’s Islamic Revolutionary Guard Corps (IRGC) has allegedly moved over a $1 billion worth of stablecoins via two “UK-based front companies” called Zedcex and Zedxion.

The report claimed that despite the two firms publicly presenting themselves as individual firms, they have been quietly functioning together “as financial infrastructure for the IRGC.”

Source: CoinTelegraph