Cryptocurrency Amid Economic Strain in Iran
Iran’s economy is really feeling the pinch these days, and it’s not just a minor inconvenience. Harsh sanctions, rising inflation, and a stumbling currency have pushed many citizens to explore cryptocurrencies as a possible financial alternative.
Recent data from blockchain sources shows a noticeable uptick in Bitcoin withdrawals and transfers to personal wallets, particularly during uncertain times and when internet access has been restricted. For a lot of Iranians, these digital assets are becoming a crucial way to protect wealth against a faltering currency and move money outside of government oversight.
Since 2018, the Iranian rial has plummeted in value, losing about 90% against the US dollar. Inflation rates are varying between a staggering 40% and 50%. As a result, cryptocurrency usage has steadily risen, with projections estimating that activity will hit around $7.78 billion by 2025, as reported by Chainalysis.
Bitcoin Usage Rises During Protests
There’s been a marked increase in cryptocurrency transactions during the widespread protests that kicked off in late December 2025, driven by soaring living costs and currency decline. As demonstrations escalated, authorities imposed an internet blackout and tightened financial controls.
During this tumultuous time, data from the blockchain showed higher average daily transaction values, alongside a significant rise in transfers from Iranian exchanges to personal Bitcoin wallets. Interestingly, small withdrawals—likely by individual users—saw the biggest growth. There’s also been a rise in medium and large remittances, indicating that both individuals and businesses are eager to transfer money away from local systems.
The major draw of Bitcoin is its ability to be held and moved without reliance on domestic banks or government control. Given the restricted access to cash, foreign currency, or international remittances in Iran, cryptocurrencies offer a useful means to maintain some economic stability.
The Complex Role of Cryptocurrencies
While everyday Iranians are turning to cryptocurrencies as a safeguard for their savings, there are also state-linked actors playing a role in the digital asset landscape.
Wallets tied to Iran’s Islamic Revolutionary Guards Corps (IRGC) represented over half of the country’s cryptocurrency transactions in the last quarter of 2025. These wallets amassed more than $3 billion that year, a jump from approximately $2 billion in 2024.
Western officials suspect that the Revolutionary Guards are leveraging cryptocurrencies to dodge sanctions, transfer funds internationally, and finance regional operations. Chainalysis indicates that the actual figure may even be higher, as there are many affiliated wallets and networks still unidentified.
This explosion of crypto activity has unfolded against a backdrop of significant political and security events, like the Kerman bombing in 2024, a missile strike in October 2024, and a 12-day conflict in June 2025 that shook Iran’s major crypto exchanges and state-run banks.
Coping with Economic Pressures
For a growing number of Iranians, cryptocurrencies have become more than just a speculative investment—they are a lifeline in an economy plagued by inflation, sanctions, and restricted access to global markets. The resilience and portability of Bitcoin make it particularly appealing during tumultuous times and capital restrictions.
Experts believe that the use of cryptocurrencies in Iran will likely keep rising, especially as economic and geopolitical challenges persist. Whether for securing personal finances or sidestepping sanctions, digital assets are undeniably becoming integral to Iran’s financial system.
