Iran Rides Out Sanctions with Bitcoin

Iran's economy continues to rely on Bitcoin as a means to skirt around sanctions. The country's central bank has reportedly turned a blind eye to the use of cryptocurrencies, including Bitcoin, for cross-border transactions through Iranian crypto exchanges.

Citing conversations with businesses and regime insiders, the Financial Times reported that the central bank had 'quietly encouraged traders' to facilitate the flow of money to help the struggling economy. One business insider noted that the central bank doesn't ask questions about how money is transferred.

Iran's reliance on Bitcoin has been ongoing despite a sharp escalation in sanctions beginning in late 2025, including UN snapback measures and expanded U.S. energy sanctions. The country has also been involved in a naval blockade that has cut oil exports by more than 80% since February 2026.

The use of Bitcoin is particularly significant due to its decentralized nature, which makes it difficult for the U.S. to freeze or track transactions. Stablecoins like Tether's USDT can be frozen by their issuers, but Bitcoin cannot.