This is a total fail for the Iranian government. We saw this coming, and here we are. Why would they even choose stable coins? DAI could've been better, but nope, they went for USDT.
Iran's Tether Freeze and Its Implications
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Yeah but DAI isn’t free from censorship either since it’s backed by USDC. They probably picked USDT for its liquidity and didn’t think it would come back to bite them.
pix3l_h4shNewbie
Posts: 147 · Reputation: 22
#3Nov 20, 2019, 11:36 PM
Right? They want to ditch the dollar but are using USDT, which is basically a digital dollar. They’re pushing for crypto alternatives, but then cling to a centralized currency.
Iran officials were saying they want to use Bitcoin for oil payments, so they know USDT is centralized. I guess those addresses were from older operations, not recent ones.
chris_maxiNewbie
Posts: 219 · Reputation: 36
#5Nov 21, 2019, 01:07 AM
If USDT’s linked to Iran, it’s getting frozen for sure. Bitcoin will probably be labeled as dirty. It’s gonna be tricky for Iran dealing with US sanctions.
I heard that $344M was frozen from two Tron addresses. Those transactions seem to be tied to older Iranian activities, not the recent tariffs.
I can't believe they’d be so clueless about USDT’s nature. If these funds really belong to Iran, that raises questions about incompetence or internal sabotage.
Avoiding US sanctions is tough, especially since they control the global financial system. But look at Russia, they're still trading despite sanctions. Iran just got too comfy.
SilentOrbitSenior Member
Posts: 97 · Reputation: 1264
#9Nov 24, 2019, 05:24 AM
Not sure this is a success story, really. Iran probably wants to dump USDT for BTC fast. These frozen wallets likely belong to small exchanges with US ties.
A country under sanctions like Iran shouldn't be messing with Tether. The US can track these transactions easily, so using enemy currency is a huge mistake.
DAI isn’t a good example here. It’s decentralized but can’t handle what Iran needs. They should’ve gone for privacy coins like Monero instead.
Exactly! Using USDT is a recipe for disaster. They should know by now that it's centralized and can be frozen anytime.
It’s surprising they went for USDT. They usually avoid centralized stablecoins. They need to rely on Bitcoin more, but tracking is still a concern.
CyberTokenSenior Member
Posts: 67 · Reputation: 896
#14Nov 25, 2019, 02:28 PM
USDT’s popular due to liquidity, but they really should’ve used Bitcoin. USD still dominates international trade, which complicates things for them.
bridge_2009Newbie
Posts: 75 · Reputation: 33
#15Nov 25, 2019, 07:15 PM
Iran’s in a tight spot now. USDT is centralized, and Bitcoin will be seen as tainted. They really should have thought this through.
True, if it’s controlled by a company, funds can be frozen. This isn’t new. Look at what happened with the Russia-Ukraine situation.
It’s kinda funny, right? Moving from the dollar to a digital dollar? Seems like they wanted to avoid the USD but picked the wrong alternative.
bear_diamondMember
Posts: 30 · Reputation: 208
#18Nov 28, 2019, 10:30 AM
They didn't jump from USD to USDT. Those frozen coins are from past operations. Why not convert USDT to BTC knowing the risks?
Maybe they were just moving money around, got caught up. Tether seems to do what the US wants. What if your country is next?
They really messed up. We thought they chose BTC for its freedom, but now it looks like they were wrong. Maybe these addresses aren’t even theirs.
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