Iran's Currency Crisis Drives Surge in Crypto Adoption and Bitcoin Withdrawals

Source: CryptoTale Original Title: Iran’s Rial Collapse Triggers Activity in Crypto Ecosystem Original Link: According to blockchain analytics reports, Iran’s Central Bank has acquired over $500 million in dollar-backed digital assets in the past year to mitigate a currency crisis and bypass sanctions. Iran has also begun offering cryptocurrency payments for overseas contracts, signaling a shift in how sanctioned states conduct trade.

The widespread currency devaluation has caused the Iranian rial to plummet by 90%, triggering a new trend among the public. Iranians are withdrawing Bitcoin from exchanges and storing it in personal wallets as a response to the ongoing currency crisis. This shift reflects how geopolitical uncertainty has become a contributor to the growth of the crypto ecosystem in Iran.

Iran’s crypto ecosystem has grown to nearly $7.78 billion in 2025, representing rapid growth compared to the previous year. The Islamic Revolutionary Guard Corps (IRGC) on-chain activity alone contributed to over 50% of Iran’s total crypto ecosystem in Q4 of 2025.

Economic Collapse Background

The recent economic collapse has its roots dating back to 1979. Iran faced enhanced international sanctions, including an arms embargo, trade controls, asset freezes, travel bans, and export restrictions. During 2019 and 2020, sanctions were further extended to the finance and banking sector. The strain on Iran’s economy has been severe, fueling prolonged inflation and eroding the living standards of ordinary citizens.

The Turn to Digital Assets

“During the recent mass protests, Iranians have significantly increased withdrawals of Bitcoin to personal wallets, possibly as a flight to safety amid currency collapse and political instability,” according to blockchain analytics reports.

It was not just ordinary Iranians who turned to digital assets. The IRGC also significantly contributed to on-chain activity during Q4 2025. “Notably, it is not just ordinary Iranians who have turned to crypto—the Islamic Revolutionary Guard Corps (IRGC) has extensively leveraged digital assets to finance its activities,” according to reports.

Both external and internal pressures have caused the country to turn increasingly to digital assets as an alternative to traditional financial systems.