Iran Turns to Crypto Amid Economic Crisis and Internet Outage

Economic Turmoil and Government Response

Iran has been experiencing severe economic challenges that have culminated in widespread protests across the country. The government's response to these protests has included shutting down internet access, a measure that has significant implications for both the population and the economy. Despite the internet shutdown, Iranians have turned to cryptocurrency as a means of preserving their wealth.

Crypto Adoption in Iran

According to data from Statista, approximately seven million Iranians, out of a population of 92 million, are estimated to be cryptocurrency users. This significant adoption rate underscores the importance of digital assets in Iran, particularly during times of economic uncertainty. TRM Labs, a blockchain analytics firm, reported that the total crypto transaction volume in Iran reached US$3.7 billion between January and July 2025.

Implications of Internet Shutdown

The government's decision to cut off internet access during the protests raises questions about the ability of Iranians to continue using cryptocurrencies under such conditions. However, the data suggests that despite the challenges posed by the shutdown, cryptocurrency transactions have continued, highlighting the resilience of the crypto ecosystem.

Cryptocurrency as a Financial Lifeline

The situation in Iran illustrates the critical role that cryptocurrencies can play during national crises, particularly when traditional financial infrastructure is disrupted. As governments grapple with how to respond to protests and economic challenges, the adoption of cryptocurrencies presents both opportunities and challenges for financial stability and control.