Iranians Turn to Cryptocurrency Amid Economic Crisis and Sanctions

As Iran faces an increasingly challenging economic situation exacerbated by sanctions, soaring inflation, and a declining currency, many citizens are turning to cryptocurrency as an alternative financial solution.

Key Takeaways

Economic Hardship: The Iranian rial has lost nearly 90% of its value against the U.S. dollar since 2018, causing high inflation rates between 40% and 50%.
Rise in Crypto Activity: Estimates suggest Iran's cryptocurrency activities could reach about $7.78 billion by 2025.
Increased Transactions During Unrest: Bitcoin transactions spike during protests and internet blackouts, as individuals seek financial autonomy.
State Involvement: Wallets linked to Iran's Islamic Revolutionary Guard Corps (IRGC) accounted for over half of crypto transactions, utilizing digital assets to circumvent sanctions.
Financial Survival: Cryptocurrencies have become crucial for many Iranians as they navigate financial instability and seek ways to preserve wealth.

crypto bitcoin iran

This article explores the growing trend of cryptocurrency use in Iran, particularly Bitcoin, as individuals seek stability amid economic turmoil. It highlights the increase in digital asset transactions during times of unrest and how both ordinary citizens and state-linked actors are engaged in crypto activities.

The Surge of Bitcoin Use During Protests and Internet Restrictions

Amid mass protests that erupted in late December 2025 due to escalating living costs and currency devaluation, the use of cryptocurrencies surged. As protests intensified, authorities enacted internet restrictions and tightened financial regulations.

During this tumultuous time, data from blockchain analytics revealed increased average daily transaction values, alongside a significant rise in Bitcoin transfers from Iranian exchanges to personal wallets. Notably, individual users saw a remarkable growth in smaller withdrawals, while medium and large transfers also increased, indicating that both households and businesses were actively seeking to move their funds away from local exchanges.

The appeal of Bitcoin lies in its capability to be stored and transferred without dependence on domestic banks or government oversight. For many Iranians encountering barriers to accessing cash, foreign currency, or international transfers, cryptocurrency offers a means to maintain value and some level of financial flexibility.

Cryptocurrencies: A Tool for Citizens and State-linked Actors

While many ordinary Iranians utilize cryptocurrencies to safeguard their savings, individuals associated with state entities are also engaging with digital assets. Wallets linked to Iran’s Islamic Revolutionary Guard Corps (IRGC) represented more than half of the country's crypto transaction value in the last quarter of 2025. These wallets reportedly received over $3 billion throughout the year, an increase from around $2 billion in 2024.

Western authorities suspect that the IRGC exploits cryptocurrencies to bypass sanctions, facilitate funds across borders, and support their regional activities. Blockchain analysis suggests that the figures might underestimate the actual scale, as numerous connected wallets and networks remain unidentifiable.

Moreover, spikes in Iranian crypto activities often coincide with significant political and security events, such as the Kerman bombings in 2024, missile strikes in October 2024, and a 12-day conflict in June 2025, which notably disrupted Iran's largest crypto exchange and a major state bank.

For many Iranians, cryptocurrencies have evolved beyond mere speculative investments; they are increasingly viewed as essential tools for financial survival in a landscape marked by rampant inflation, sanctions, and limited access to international markets. The censorship-resistant nature and portability of Bitcoin make it particularly appealing during periods of unrest or imposed capital controls.

With ongoing economic pressures and heightened geopolitical tensions, blockchain analysts anticipate that the use of cryptocurrencies in Iran will persist in its upward trajectory. Whether for wealth preservation or to navigate sanctions, digital assets have become a significant component of Iran's financial ecosystem.

Cover image sourced from ChatGPT, BTCUSD chart from TradingView.