Iran Imposes Strict Limits on Stablecoin Use as Rial Crashes to Record Low

Iran has moved to sharply restrict the use of stablecoins just as its national currency plummets to unprecedented levels. Authorities announced new rules capping annual stablecoin purchases at $5,000 per person and total holdings at $10,000, a measure they say is aimed at tightening control over digital assets as the rial suffers another dramatic collapse.

The decision was formalized this week during a session of the Central Bank’s High Council and applies to all traders and users operating through licensed digital platforms. Asghar Abolhasani, secretary of the High Council, confirmed the details on state television, emphasizing that compliance will be mandatory within a one-month transition period. “From now on, the ceiling for purchasing stablecoins is set at $5,000 per user annually, and holdings cannot exceed $10,000,” Abolhasani said. He added that those who already hold more than the limit must adjust their balances promptly or face penalties.

Stablecoins, digital tokens pegged to fiat currencies, have become a crucial lifeline in Iran’s fragile economy. Tether, linked to the U.S. dollar, is by far the most popular. For many households and small businesses, converting rials into Tether has offered a way to protect savings from soaring inflation or to move funds abroad amid strict banking restrictions.

The new measures arrive as the rial hit an all-time low of 1,136,500 to the U.S. dollar on Saturday, reflecting both economic mismanagement and the looming reimposition of United Nations sanctions. Analysts expect the currency to slide further, citing deepening public distrust in the government’s ability to stabilize the economy.

Stablecoins surged in popularity earlier this year during escalating tensions with the United States and Israel, when many Iranians saw digital dollars as the only reliable store of value. For small traders and freelancers, crypto had become a crucial tool for survival, enabling them to bypass failing domestic systems. The new limits are likely to hit this group hardest, forcing many to scale back their activities or risk slipping into underground markets.

The Central Bank’s approach mirrors earlier attempts to contain demand for hard currency during financial crises. Authorities have previously limited access to dollars and gold in hopes of slowing capital flight and shoring up the rial. Yet history suggests such measures often drive demand into unofficial channels rather than addressing the underlying causes of depreciation.

Iran’s currency has been under steady downward pressure for over a decade, weakened by sanctions, high inflation, and persistent policy failures. With renewed international restrictions on the horizon and trust in the rial at historic lows, many fear that the crackdown on stablecoins will only deepen the disconnect between official policy and the financial realities faced by ordinary Iranians.