TLDR
- Iran has introduced a $5,000 annual cap on stablecoin purchases to combat the devaluation of the rial.
- The new rules set total stablecoin holdings at a maximum of $10,000 per person.
- A one-month transition period has been granted to individuals and businesses holding stablecoins over the new limits.
- Stablecoins like Tether (USDT) have become vital for Iranians seeking to protect their savings from inflation.
- The directive follows the rial’s collapse to a historic low and the looming threat of renewed UN sanctions.
Iran has announced a new directive limiting stablecoin purchases. The country’s unstable rial currency, which recently hit an all-time low, has triggered this decision. The government is capping individual and corporate stablecoin purchases in response to ongoing economic challenges. Stablecoins have become vital for many Iranians to safeguard their savings amid inflation and currency devaluation.
New Limits on Stablecoin Purchases
The new directive limits stablecoin purchases to $5,000 annually per person. In addition, total stablecoin holdings must not exceed $10,000. The decision was finalized by Iran’s Central Bank’s High Council earlier this week. Asghar Abolhasani, the council’s secretary, confirmed these measures during an interview with state TV. He said, “The ceiling for purchasing stablecoins is set at $5,000 per user annually, and holdings cannot exceed $10,000.”
A one-month transition period has been granted to those who already hold stablecoins. This allows them time to comply with the new limits. Those who exceed the $10,000 threshold will need to adjust their holdings within this time frame. Abolhasani emphasized the importance of adhering to the new rules, stating, “The authorized ceiling for holdings must be observed during the one-month transition period.”
Stablecoins’ Role Amid Iran’s Currency Crisis
Stablecoins, like Tether (USDT), have gained significant popularity in Iran. Many Iranians use them to preserve value and protect against inflation. As the rial continues to lose value, stablecoins provide a more reliable store of wealth. These digital assets are pegged to the US dollar, making them a popular choice for Iranians facing the financial instability of their national currency.
Despite the rial’s struggles, stablecoins have enabled traders and households to move funds abroad or maintain purchasing power. For many, stablecoins are a critical means of avoiding an unreliable banking system. The increased reliance on stablecoins highlights the rising demand for alternatives to Iran’s official currency. As the rial weakens further, the need for stablecoins is expected to grow.
Impact of UN Sanctions and Iran’s Economic Situation
The announcement comes amid concerns over the potential re-imposition of UN sanctions. These sanctions have further pressured the rial, exacerbating Iran’s economic difficulties. The Iranian government is now taking steps to control the use of foreign currencies and stablecoins to limit further instability. However, such restrictions have been met with mixed reactions.
The new cap on stablecoin purchases could severely impact traders and small businesses. Many of them depend on crypto transactions to stay afloat during the economic crisis, and they are now anxious about how the new regulations will affect their operations.
Despite these measures, Iran continues to face severe challenges, including an ongoing energy crisis. Citizens have voiced their frustrations, blaming both the government’s actions and illegal mining activities for worsening the country’s situation.
