As Iran’s economy continues to suffer from heavy sanctions, high inflation, and a weakening currency, many citizens are turning to crypto as an alternative financial lifeline.
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Recently blockchain data shows a sharp increase in Bitcoin withdrawals and transfers to personal wallets, especially during periods of unrest and internet restrictions. For many Iranians, digital assets now serve both as a hedge against currency collapse and as a way to move money outside government-controlled systems.
The Iranian rial has lost around 90% of its value against the US dollar since 2018, while inflation has hovered between 40% and 50%. In response, cryptocurrency use has steadily grown, with total Iranian cryptocurrency activity estimated to reach $7.78 billion by 2025, according to Chainalysis.
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Bitcoin use rises during protests and internet outages
Crypto activity surged during the mass protests that started in late December 2025, caused by rising costs of living and currency devaluation. As the demonstrations spread, authorities shut down the internet and tightened financial controls.
During this period blockchain data showed higher average daily transaction values and a notable increase in transfers from Iranian exchanges to self-custody Bitcoin wallets.
Smaller recordings, often associated with individual users, showed the strongest growth. Medium and large transfers also increased, indicating that both households and businesses were trying to move money away from local platforms.
Bitcoin’s appeal lies in its ability to be stored and transferred without relying on domestic banks or state supervision. 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.
The dual role of Crypto: citizens and state actors
While ordinary Iranians use cryptocurrencies to protect savings, state-linked actors are also active in the digital asset space.
Portfolios associated with those of 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 more than $3 billion during the year, up from about $2 billion in 2024.
Western authorities believe that the IRGC is using cryptocurrencies to circumvent sanctions, move funds across borders and support regional operations. Chainalysis notes that these numbers likely underestimate the true size, as many connected wallets and networks remain unidentified.
At the same time, the spikes in Iranian crypto activity closely followed major political and security events, including the Kerman bombings in 2024, rocket attacks in October 2024, and a 12-day conflict in June 2025 that disrupted Iran’s largest crypto exchange and a major state-owned bank.
A growing dependence on digital assets
For many Iranians, cryptos have become more than a speculative asset. They are increasingly used as a tool for financial survival in an economy characterized by inflation, sanctions and limited access to global markets. Bitcoin’s resistance to censorship and portability make it especially attractive during periods of unrest or capital controls.
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As economic pressures persist and geopolitical tensions remain high, blockchain analysts expect crypto usage in Iran to continue to rise. Whether preserving personal wealth or dealing with sanctions, digital assets are now a central part of Iran’s financial landscape.
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