Stablecoins were designed to bring stability to the volatile world of crypto. Yet in places like Venezuela and Iran, they have evolved into something far more complex: a parallel financial system that can both liberate ordinary people and empower sanctioned networks.
At the center of this duality is Tether (USDT), the world’s most widely used dollar-backed stablecoin. In economies crippled by inflation, sanctions and political instability, USDT has become a digital lifeline. At the same time, its borderless nature has made it attractive to state-linked actors seeking to move money outside traditional oversight.
The result is a powerful reminder that financial technology is never neutral — it amplifies human intent, whether that intent is survival or evasion.
Iran: Hedge Against Collapse, Channel for Sanctions Evasion
Iran has entered 2026 amid worsening economic conditions and widespread unrest. The Iranian rial continues to weaken, eroding savings and purchasing power. For many citizens, stablecoins are no longer a curiosity but a necessity.
Tron-based USDT has emerged as the most commonly used digital asset in the country. It allows Iranians to store value in something that behaves like the US dollar without relying on domestic banks. For freelancers, families receiving remittances, or anyone trying to preserve their income, USDT is often the only practical hedge against inflation.
However, blockchain analytics firm TRM Labs reports that since 2023, entities linked to Iran’s Islamic Revolutionary Guard Corps (IRGC) have moved over $1 billion in stablecoins through front companies. These networks reportedly function as financial infrastructure for sanctioned operations, moving value across borders and jurisdictions.
Here lies the contradiction:
The same tool that protects civilians from economic collapse can also be weaponized by institutions under international sanction.
Venezuela: Everyday Money in a Broken Banking System
Venezuela offers a parallel story from a different angle.
Years of hyperinflation and loss of trust in the banking system have pushed everyday commerce into informal channels. For many Venezuelans, USDT is not an “investment” — it is money.
Stablecoins are reportedly used for:
- Paying service workers
- Settling freelance work
- Buying groceries
- Receiving remittances
In some communities, using a crypto wallet is more practical than opening a bank account. Stablecoins provide what the local system no longer can: predictability.
At the same time, Venezuela’s state-run oil company has reportedly demanded payments in USDT to bypass sanctions, with estimates suggesting that a large portion of oil revenue flows through the stablecoin. This has drawn scrutiny from US authorities and led to Tether blacklisting dozens of wallets tied to such activity.
Again, the pattern is clear:
Stablecoins serve both the people and the state — even when those goals are in conflict.
Tether’s Role: Neutral Tool or Active Gatekeeper?
Tether has responded by increasingly cooperating with regulators, freezing billions of dollars in USDT linked to illicit or sanctioned activity. Between 2023 and late 2025, over $3.3 billion in USDT was blacklisted across various chains, with Tron-based USDT accounting for the majority.
This introduces a new layer of complexity. Stablecoins were born from the idea of financial neutrality, yet at scale they inevitably become part of geopolitical systems. The issuer becomes a de facto gatekeeper, balancing:
- Humanitarian utility
- Regulatory compliance
- Global political pressure
Stablecoins are no longer just crypto instruments — they are infrastructure.
The Bigger Question for Web3
The stories of Venezuela and Iran expose a core tension in Web3:
- Open financial tools empower individuals when institutions fail.
- The same openness enables actors to bypass global rules.
There is no simple fix. Overregulation risks cutting off civilians who rely on these tools to survive. Total permissiveness invites abuse at scale. The future of stablecoins will likely depend on whether the industry can design systems that preserve access for individuals while limiting systemic exploitation.
This challenge will define the next phase of crypto’s relationship with the real world.
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