Behind Iran's $7.8 billion crypto ecosystem: Why are both the public and officials rushing for Bitcoin?

In 2025, Iran's cryptocurrency ecosystem reaches a scale of $7.78 billion. Behind this figure is not simply market prosperity, but a true reflection of a country under extreme economic and political conditions. According to the latest Chainalysis report, the core drivers of this growth are the large-scale protests at the end of December and the ongoing devaluation of the currency. More notably, both the public and authorities are using cryptocurrencies to cope with the crisis, which demonstrates that Bitcoin's role as “digital gold” is being validated globally.

Real-world Demand Driven by Economic Crisis

The reason Iranians are turning to cryptocurrencies is straightforward: their national currency is collapsing. Data shows that the Iranian Rial to USD exchange rate has plummeted from about 42,000 at the end of 2025 to over 1,050 this week, with purchasing power nearly wiped out. Meanwhile, domestic inflation rates are between 40% and 50%, meaning savings in fiat currency are effectively losing value over time.

In such an environment, people's choices become rational and inevitable. Between the protests that erupted on December 28 and the internet shutdown on January 8, the number of Iranians transferring Bitcoin from exchanges to personal wallets surged. This is not speculation but self-preservation—shifting assets to a place beyond government control that won't depreciate due to inflation.

Both Public and Authorities Using Cryptocurrencies

Even more interesting is that this phenomenon is not limited to ordinary citizens; official entities are also increasing their reliance on crypto assets.

According to Chainalysis data:

• Addresses associated with the Iranian Islamic Revolutionary Guard Corps received over 50% of Iran's cryptocurrency value in Q4 2025
• Throughout the year, these official-backed wallets handled over $3 billion
• This indicates that state-level actors are using cryptocurrencies to circumvent international sanctions

This is a phenomenon worth deep reflection. When citizens use cryptocurrencies to protect their assets, and officials use them to evade sanctions, it transcends the category of “investment asset” and becomes a form of financial infrastructure.

Validation of Global Patterns

Iran's case is not an isolated example. According to related analyses, it aligns with global patterns: during times of war, economic turmoil, or government repression, people tend to turn to cryptocurrencies to safeguard their assets. Due to their decentralized, censorship-resistant, and cross-border transfer capabilities, cryptocurrencies have become key tools against currency devaluation and political instability.

What does this mean? The value proposition of cryptocurrencies like Bitcoin—“not relying on any central authority, unfreezable, and borderless”—is being validated in the most extreme environments. It is not just an idealistic dream but a real demand during economic crises.

Insights for the Crypto Ecosystem

The growth of Iran's crypto ecosystem from 2024 to 2025, along with people's behavior during the crisis, sends several signals to the global crypto market:

• The “digital gold” attribute of cryptocurrencies is most compelling in extreme environments
• Both authorities and the public are using cryptocurrencies, indicating their functionality is widely recognized
• This demand is driven by necessity and is genuine, not speculative

Summary

Iran's $7.8 billion crypto ecosystem is fundamentally a rational choice by a nation under economic crisis and political pressure. From the collapse of the Rial to the surge in withdrawals, from large official holdings to over 50% of funds flowing into crypto, every data point tells the same story: when traditional financial systems fail, cryptocurrencies become the last refuge. This is not speculation; it is survival. And this is the most powerful endorsement of the value of Bitcoin and other crypto assets.