Cryptocurrency usage in Iran reaches US$ 7.8 billion in 2025, driven by protests involving Bitcoin

Source: PortaldoBitcoin Original Title: Use of cryptocurrencies in Iran reaches US$ 7.8 billion in 2025, driven by protests with Bitcoin Original Link: While the Iranian economy faces worsening instability and currency collapse, cryptocurrency activity linked to the country surged to nearly US$ 7.8 billion in 2025, according to a new blockchain analysis report.

Data shows that digital assets are increasingly playing two distinct roles: as a financial escape valve for civilians during times of instability and as a growing channel for state-linked actors operating under sanctions.

“The effects of the search for security documented in the report are largely restricted to Bitcoin, suggesting that, in times of crisis, this is the preferred safe-haven asset for civilians in Iran,” said a researcher. “However, stablecoins are also frequently used for remittances due to their ease of use, low cost, and stability, which is especially crucial during hyperinflation.”

For Iranians living under a government facing chronic economic instability and inflation between 40% and 50%, cryptocurrencies have become more than a way to circumvent sanctions, serving as an escape from what has been described as a failed system.

Sharp increase in 2025

The US$ 7.78 billion figure represents a sharp increase compared to 2024. With protests intensifying in Iran at the end of December and internet restrictions imposed nationwide by authorities, withdrawals from cryptocurrency exchanges to personal wallets skyrocketed as access to state-controlled financial channels became less reliable.

“It’s unclear what proportion of funds will return from cryptocurrencies to the local currency and traditional financial networks after the crisis,” said an analyst. “Given the significant collapse in the value of the local currency, a return to the local currency is unlikely to be an attractive option for most people.”

Cryptocurrency adoption is consolidating, and once integrated into the system, “a full return to traditional financial systems is unlikely.”

Bitcoin as a tool for financial freedom

The shift toward self-custody during protests reflects Bitcoin’s appeal in environments marked by financial repression and exchange rate instability.

“In countries where citizens fear their governments, worry about financial censorship, or see their local currency devalue, Bitcoin offers an alternative,” said an expert. “Whenever any of these factors increase, we should expect Bitcoin holdings to rise. And the only way to ensure access to your Bitcoins and use them privately is to transfer them to a personal wallet.”

Since its creation in 2009, Bitcoin has been used by activists and dissidents as an alternative means of payment, gaining greater visibility in 2011 when WikiLeaks began accepting Bitcoin donations after suffering a financial blockade from traditional payment platforms.

A study published in the journal International Review of Economics & Finance also found that during crises like COVID-19 and geopolitical conflicts, Bitcoin usage tends to increase as access to banks and payment networks is interrupted.

State activity with cryptocurrencies

Although the report highlighted the increased use of Bitcoin among protesters, it also documented a rise in cryptocurrency activity linked to the State. Addresses associated with Iranian institutions accounted for more than 50% of all cryptocurrency value received in the country during the last quarter of 2025, according to analyses of sanctioned wallets.

“Adoption of Bitcoin by state actors signals to the rest of the world and Iranian citizens that it is valuable,” said a researcher, adding that activists call Bitcoin a “tool for freedom.”

Analyses indicate that the numbers likely underestimate the true scale of state involvement with Bitcoin, focusing on already identified addresses and excluding unidentified intermediaries, front companies, and facilitators who may also play a role in moving digital assets.

Conclusion

Findings suggest that Bitcoin has become an integral part of the Iranian financial landscape, both for individuals seeking to preserve their personal wealth and for agents circumventing international restrictions.

“When leaders acquire Bitcoin for its investment potential, the country’s citizens learn more about the cryptocurrency and want to acquire it as well. In doing so, they encounter a currency that cannot be manipulated, offers significant financial privacy, and resists censorship. By seeking wealth through Bitcoin, rulers give more freedom to their people.”