The world’s largest stablecoin, USDT, is seeing a rise in usage in countries subjected to sanctions. According to a report by Bloomberg based on Chainalysis data, the adoption rate of USDT is increasing in major cities across Eastern Europe, the Middle East, and Africa. Notably, Russia and Iran, which face significant sanctions, are among the regions witnessing this growth.
Rising Usage Patterns
Data from January 1 to October 8 of this year shows a remarkable increase in new uses of digital wallets containing USDT. Usage is particularly high during late mornings and early afternoons in cities like Moscow, Tehran, Kigali, and Istanbul. The activity during these times indicates that USDT may be increasingly adopted in these areas.
However, crypto analysis firms point out that this increase in USDT usage does not necessarily imply a direct rise in interest in USDT within sanctioned countries. An official noted that crypto wallets can be used worldwide at any moment, suggesting that it may not be entirely accurate to attribute this usage solely to sanctions.
Response from Tether
Tether CEO Paolo Ardoino stated, “As Tether, we regularly collaborate with law enforcement to prevent the misuse of USDT. If an investigation as claimed in the article were occurring, we would have been contacted. Therefore, we confirm that these claims are false.” Ardoino emphasized Tether’s ongoing commitment to transparency and compliance.
This statement comes amidst reports of U.S. regulators initiating an investigation into Tether for allegedly violating anti-money laundering and sanction laws. Some reports indicate that the Treasury Department is considering sanctioning Tether due to the widespread use of USDT among sanctioned entities.
The increase in USDT usage is being closely monitored by market observers. Experts are assessing how this development might impact cryptocurrency markets. While there are indicators suggesting a higher use of USDT in sanctioned countries, it remains unclear whether this reflects a definitive adoption. Future developments could influence regulatory practices and user behaviors.
