Iranians Turn to Crypto as Economic Crisis and Sanctions Deepen

As Iran’s economy continues to strain under heavy sanctions, high inflation, and a weakening currency, many citizens are turning to crypto as an alternative financial lifeline.

The Iranian rial has lost around 90% of its value against the U.S. dollar since 2018, while inflation has hovered between 40% and 50%. In response, crypto usage has grown steadily, with Iran’s total cryptocurrency activity reaching an estimated $7.78 billion in 2025, according to Chainalysis.

Crypto activity surged during mass protests that began in late December 2025, triggered by rising living costs and currency devaluation. As demonstrations spread, authorities imposed internet shutdowns and tightened financial controls.

Smaller withdrawals, often associated with individual users, recorded some of the strongest growth. Medium and large transfers also increased, suggesting that both households and businesses were seeking to move funds out of local platforms.

Bitcoin’s appeal lies in its ability to be stored and transferred without relying on domestic banks or state oversight. For Iranians facing restrictions on access to cash, foreign currency, or international transfers, crypto offers a way to preserve value and maintain some financial mobility.

While ordinary Iranians are using cryptocurrencies to protect savings, state-linked actors are also active in the digital asset space.

Western authorities believe the IRGC uses cryptocurrencies to bypass sanctions, move funds across borders, and support regional operations. Chainalysis notes that these figures likely underestimate the true scale, as many affiliated wallets and networks remain unidentified.

At the same time, spikes in Iranian crypto activity have closely followed major political and security events, including the Kerman bombings in 2024, missile strikes in October 2024, and a 12-day conflict in June 2025 that disrupted Iran’s largest crypto exchange and a major state bank.

For many Iranians, cryptos have become more than a speculative asset. They are increasingly used as a tool for financial survival in an economy marked by inflation, sanctions, and limited access to global markets. Bitcoin’s censorship resistance and portability make it especially attractive during periods of unrest or capital controls.

As economic pressures persist and geopolitical tensions remain high, blockchain analysts expect crypto usage in Iran to continue rising. Whether as a means of preserving personal wealth or navigating sanctions, digital assets are now a central part of Iran’s financial landscape.

Cover image from ChatGPT, BTCUSD chart from Tradingview