Iran is continuing to use bitcoin and other cryptocurrencies to facilitate cross-border transactions and support its struggling economy, according to a recent report by the Financial Times.
Citing regime insiders, analysts, and business sources, the report indicates that Iran's central bank has quietly encouraged traders to use digital assets while turning a blind eye to how funds are transferred. A business insider noted that the central bank asks no questions regarding the money transfer methods used.
Iran has faced decades of international sanctions, which intensified significantly with escalations beginning in late 2025, including UN snapback measures, expanded U.S. energy sanctions, and EU actions. These pressures were further compounded by a naval blockade starting in February 2026—following the outbreak of war with the U.S. and Israel—that has reduced oil exports by over 80%. The country also contends with one of the highest inflation rates globally.
Amid these economic challenges, Iran launched a bitcoin-backed insurance service earlier this year for shipping companies. In July, the U.S. Treasury’s Office of Foreign Assets Control (OFAC) reported that Iran had been dodging sanctions by accepting bitcoin payments from ships passing through the Strait of Hormuz via a system called Hormuz Safe, developed by Iran’s Ministry of Economy.
While the U.S. announced in July that it had frozen certain crypto assets linked to the regime—primarily Tether's USDT stablecoin, which can be frozen by its issuer—bitcoin remains decentralized with no single issuer, preventing such intervention.
Military conflict between Iran, the U.S., and Israel began in February 2026. Despite intermittent diplomatic efforts, including a Pakistan-brokered ceasefire in April and a short-lived memorandum in June, both efforts collapsed, and no active ceasefire is currently in place.
