Iranian Rial: How Crypto Bypasses Sanctions and Keeps Iran's Economy Running

When the Iranian rial, the official currency of Iran, which has lost over 90% of its value since 2018 due to U.S. sanctions and mismanagement. Also known as IRR, it's no longer trusted for everyday purchases or savings. People stopped trusting the Iranian rial years ago. Prices doubled overnight. Salaries became worthless by payday. But instead of giving up, Iranians turned to something else: crypto. Not as a gamble, not as a trend—but as a lifeline.

What you see in the news is a government cracking down on crypto. What you don’t see is millions of Iranians quietly using stablecoins, digital currencies pegged to the U.S. dollar, used to preserve value when local currencies collapse like USDT and USDC to buy food, pay for medicine, and send money to family abroad. They use crypto exchanges, platforms where users trade cryptocurrencies, often operating outside traditional banking systems like LocalBitcoins, Paxful, and even local Iranian platforms that don’t ask for ID. They use VPNs, tools that mask online activity and bypass government internet restrictions to access global services. And they mine Bitcoin—not for profit, but because electricity is cheap and the government doesn’t fully control it.

This isn’t theory. It’s daily life. In 2023, Iran ranked among the top five countries in peer-to-peer crypto trading volume. People trade rials for USDT in person at cafes. Parents use crypto to pay for their kids’ online courses. Small businesses accept Bitcoin because banks won’t touch them. The Iranian rial is still the official currency, but crypto is the real one.

What does this mean for the rest of the world? It shows how crypto isn’t just about speculation—it’s about survival. When governments fail, people build alternatives. Iran’s crypto scene is messy, risky, and illegal in places, but it works. And it’s not alone. Countries like Venezuela, Nigeria, and Argentina are doing the same thing. The lesson? You can’t ban money if people need it enough.

Below, you’ll find real stories and breakdowns of how Iranians use crypto under sanctions, the exchanges they trust, the scams they avoid, and how stablecoins became the new cash. These aren’t theoretical guides. They’re field reports from a country where crypto isn’t optional—it’s essential.