When fiat currency turns to waste paper, cryptocurrency quietly becomes a current for Iranians to protect their wealth.
On the streets of Tehran, an elderly Iranian holds a bag full of rials but cannot afford even a day's worth of food. In October 2025, the Iranian parliament passed a currency reform bill by a narrow majority, removing four zeros from the rial denomination all at once.
Meanwhile, in another corner, a young Iranian programmer named Ali successfully received payment for his project from an overseas client through a Bitcoin wallet. He told me: "Bitcoin is not an investment; it is a tool for our survival."
01 The reality of currency collapse, banknotes are worth less than waste paper
In today's Iran, simple shopping has turned into a mathematical competition. Buying a cup of coffee costs 100,000 rials, while a bag of flour can cost millions. ATMs often crash due to handling oversized banknotes, forcing accountants to use calculators for the most basic addition.
The Iranian rial has depreciated by 95% over the past 40 years. Before the 1979 revolution, 1 dollar exchanged for 7 rials, while by September 2025, 1 dollar could exchange for as much as 1.42 million rials on the black market.
A real vicious inflation chain has formed: restricted oil exports have led to a sharp decrease in foreign reserves, which in turn has triggered a surge in import costs and shortages of basic goods, followed by a collapse in black market exchange rates, ultimately leading to the evaporation of wage purchasing power.
Data from August 2025 shows that Iran's CPI rose by 42.4% year-on-year, with the price of one kilogram of lamb equivalent to 25 days' wages for an ordinary worker.
Faced with this reality, the Iranian public has no choice but to seek solutions. An Iranian admitted on Reddit: 'Our economy has a very high inflation rate, which is why everything in our country is very expensive. The price of the dollar in Iran rises daily, and all Iranians are losing purchasing power every day.'
02 The rise of Bitcoin, financial resistance for the common people
In the absence of a functioning traditional financial system, Iranians have begun to turn to cryptocurrency. Currently, about 25% of Iranians own cryptocurrency, 32.2% express interest, and approximately 15 to 19 million Iranians are active in the cryptocurrency market.
The popularity of Bitcoin in Iran primarily stems from three major real demands:
Withstanding hyperinflation: The Iranian rial has depreciated by 95% over the past 10 years, while Bitcoin, though highly volatile, has maintained an upward trend in the long term.
Avoiding international sanctions: Iranians are excluded from the global banking system and cannot conduct normal international transactions.
Store of value: Ordinary Iranians are unable to hold stable currencies like the US dollar, while cryptocurrency offers an alternative.
Fatemeh told me: 'I invest in Bitcoin to preserve value and avoid capital loss.' This mindset is becoming increasingly common among the Iranian middle class.
Even more surprisingly, some Iranians have begun to receive their salaries in cryptocurrency. Multiple respondents confirmed that they requested their employers to pay all or part of their salaries in USDT or Bitcoin to minimize tax burdens and the erosion of savings caused by inflation.
03 The government's contradictory stance: both control and utilization
The Iranian government's attitude towards cryptocurrency is fraught with contradictions. On one hand, in 2018, Iran recognized cryptocurrency mining as a legitimate industry, attracting overseas investors, including miners from China.
At its peak, Iran accounted for about 4.5% of the global Bitcoin hash rate, producing nearly 1 billion dollars worth of Bitcoin each year.
On the other hand, as the influence of cryptocurrency expands, the government has begun to strengthen control. In February 2025, Iran banned the publication of cryptocurrency advertisements in any situation. More severely, after the largest exchange in Iran, Nobitex, was hacked, the government implemented a 'cryptocurrency trading curfew,' stipulating that domestic cryptocurrency platforms are only allowed to operate between 10 AM and 8 PM.
This contradictory attitude reflects the government's dilemma: cryptocurrency is both a tool for evading sanctions and a threat to financial control.
An Iranian named Muhammad pointed out the key issue: 'People coexist with Bitcoin, but no one talks about it openly. In Iran, Bitcoin has political significance far greater than its economic, social, or cultural significance. People mainly use it to oppose the government.'
04 Geopolitical conflicts, cryptocurrency becomes a battleground
In June 2025, the conflict between Iran and Israel extended into the cryptocurrency realm. On June 18, a pro-Israel hacker group named 'Predatory Sparrow' launched a large-scale attack on Iran's largest cryptocurrency exchange, Nobitex.
Surprisingly, hackers did not steal funds but rather destroyed them—sending $82 million into a 'black hole' address.
Hackers explicitly stated in their announcement: 'These cyber attacks are due to Nobitex becoming an important tool for the Iranian regime to fund terrorism and violate sanctions.' This incident highlights the dual role of cryptocurrency in geopolitical conflicts: both as a tool of resistance and as a target of attack.
In fact, blockchain analysis firm TRM Labs reported that in 2022, the total amount of cryptocurrency flowing into major exchanges in Iran approached 3 billion dollars. Such a massive flow of funds has made cryptocurrency an important pillar of the Iranian economy.
05 The true role of Bitcoin, a financial freedom tool
In Iran, the application of Bitcoin is both practical and diverse:
Purchase international software and services
Send money abroad
Pay for VPN services to bypass internet censorship
Even used to pay for dental fees and fast food
Leila said: 'I use Bitcoin to purchase software and transfer to required destinations. Now some stores accept Bitcoin payments.'
For young Iranians, cryptocurrency is an important window for connecting with the world and earning foreign currency. In a sanctioned economy, cryptocurrency provides a rare financial inclusivity.
But Bitcoin is not a universal solution. Its price is highly volatile, there are high technical barriers, and it faces regulatory uncertainties. In August 2025, the Iranian government even began imposing a capital gains tax on cryptocurrency transactions.
An Iranian Bitcoin user who calls himself a 'foolish risk' pointed out that the main obstacle to Bitcoin adoption is people's misunderstanding of currency: 'Many believe that holding physical cash is safer than holding digital currency, and that currencies other than the rial still have physical assets backing them. But in reality, no currency in any country has been backed by anything since the 1970s.'
Luxury apartment rents in northern Tehran have begun to demand payment in USDT, while cafes in Tehran display signs that say 'Bitcoin accepted' but could be shut down by police at any moment. Cryptocurrency in Iran is both a necessity and a banned substance.
In Turkey's 2005 currency reform, the new lira, which removed six zeros, successfully stabilized prices. However, Turkey's success was aided by the confidence restored through EU negotiations and an increase in foreign reserves—conditions that Iran currently lacks. If Iran cannot break the dollar blockade and revive its real economy, the new currency 'Toman' is likely to repeat the same mistakes.
Bitcoin will not save Iran's national finances, but it is saving individual ordinary Iranians. As one Iranian Bitcoin user said: 'We all hope that the dark days can pass and that we can show the world that Iranians are a nation that loves peace and wishes to communicate with other countries.'
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