While Iran’s economy remains under pressure from heavy sanctions, high inflation and a weakening currency, many citizens are turning to cryptocurrency as an alternative financial lifeline.
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Recently blockchain data shows a spike in Bitcoin withdrawals and transfers to personal wallets, especially during periods of unrest and internet restrictions. For many Iranians, digital assets now serve as both a hedge against a currency collapse and a way to move funds outside the government-controlled system.
The Iranian rial has lost about 90% of its value against the US dollar since 2018, while inflation has hovered between 40% and 50%. In response, cryptocurrency usage has grown steadily, with Iran’s total cryptocurrency activity reaching an estimated $7.78 billion in 2025, according to Chainalysis.
BTC's price trends sideways on the daily chart. Source: BTCUSD on Tradingview
Bitcoin usage increases during protests and internet blackouts
Cryptoactivity increased during the mass protests that began in late December 2025, fueled by the rising cost of living and currency devaluation. As the demonstrations spread, authorities imposed internet shutdowns and tightened financial controls.
During this period, blockchain data showed higher average daily transaction values and a significant increase in transfers from Iranian exchanges to self-custodial Bitcoin wallets.
Smaller recalls, often linked to individual users, saw some of the biggest growth. Medium and large transfers also increased, suggesting that both households and businesses sought to move funds from local platforms.
Bitcoin’s appeal lies in its ability to be stored and transferred without relying on domestic banks or government 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.
Crypto Dual Role: Citizens and State Actors
While ordinary Iranians use cryptocurrencies to protect their savings, state-linked actors are also active in the digital asset space.
Wallets related to Iran Islamic Revolutionary Guard Corps (IRGC) accounted for more than half of the country’s crypto transaction value in the last quarter of 2025. These wallets received over $3 billion during the year, up from about $2 billion in 2024.
Western authorities believe the IRGC uses cryptocurrencies to circumvent sanctions, move funds across borders and support regional operations. Chainalysis notes that these figures likely underestimate the true scale, as many associated wallets and networks remain unidentified.
At the same time, spikes in Iranian crypto activity closely followed major political and security events, including the 2024 Kerman bombings, the October 2024 missile attacks, and the June 2025 12-day conflict that disrupted Iran’s largest crypto exchange and a major state-owned bank.
Increasing dependence on digital assets
For many Iranians, cryptocurrencies 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 resistance to censorship and portability make it particularly attractive during periods of unrest or capital controls.
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While economic pressures persist and geopolitical tensions remain high, blockchain analysts expect the use of crypto in Iran to continue to grow. Whether as a means of preserving personal wealth or countering sanctions, digital assets are now a central part of Iran’s financial landscape.
Cover image from ChatGPT, BTCUSD chart from Tradingview
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