Recent turmoil in Venezuela and Iran has highlighted the significance of stablecoins, like Tether, in both countries. Citizens use stablecoins to navigate economic instability and evade sanctions. Iran has faced protests due to economic woes, leading to internet shutdowns. Tron-based Tether is widely used in Iran, but adoption fell in 2025 due to hacks and regulations.

Stablecoins have been a crucial tool for Iranians as the Iranian rial plunges against the US dollar. Tron-based Tether is the most utilized asset in Iran, helping citizens hedge against inflation. However, sanctioned entities like the IRGC have allegedly moved over $1 billion worth of stablecoins to evade sanctions through UK-based front companies.

Venezuelans have also turned to stablecoins, especially USDT, to protect themselves from economic uncertainty. USDT is used for everyday transactions, with even the state-run oil company, Petroleos de Venezuela, accepting payments in the stablecoin to bypass sanctions. Tether has cooperated with the US government to blacklist wallets involved in illicit activities.

Tether has blacklisted billions of dollars worth of funds to prevent illicit activities, with a significant portion frozen in Tron-based USDT. The firm recently froze $182 million worth of Tron-based USDT, but it is unclear if this is related to Venezuela or Iran. Tether’s efforts to combat misuse of stablecoins continue, with ongoing cooperation with authorities.

Read more at Cointelegraph: Role Of Tether’s USDT Venezuela And Iran Highlights Duality Of Stablecoins