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.
