Iran is persisting in its use of bitcoin to bypass international sanctions, with the nation’s central bank reportedly turning a blind eye to the practice.
According to a Wednesday report by the Financial Times, the Middle Eastern nation has utilized cryptocurrencies—specifically bitcoin—to finalize cross-border payments via local exchanges. This comes after the central bank urged citizens to take any measures required to support the national economy.
Drawing on insights from analysts, regime insiders, and business figures, the publication noted that the central bank has offered subtle encouragement to traders to maintain capital flow and assist the troubled economy.
Bitcoin has demonstrated itself to be a reliable method for achieving this goal.
An anonymous business source told the newspaper that the central bank avoids asking questions regarding the mechanics of these money transfers.
Subject to decades of sanctions, Iran faced a severe escalation beginning in late 2025—featuring expanded U.S. energy sanctions, EU measures, and a UN snapback. These pressures were further intensified by a naval blockade and war with the U.S. and Israel that began in February 2026, which together slashed oil exports by over 80%.
Additionally, the nation suffers from some of the globe’s highest inflation rates.
Earlier in the year, Iran launched a bitcoin-backed insurance program designed for the country’s shipping enterprises.
In July, the U.S. government announced it had frozen cryptocurrency connected to the Iranian government, primarily consisting of Tether’s stablecoin.
While stablecoins like USDT can be frozen by their issuing company, bitcoin remains immune to such actions due to its decentralized nature and lack of a central issuer.
The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) stated in July that Iran had been evading sanctions by taking bitcoin payments from vessels navigating the Strait of Hormuz.
At the time, OFAC reported that Hormuz Safe—a system created by Iran’s Ministry of Economy—”accepts payment in Bitcoin and other digital assets” to successfully circumvent sanctions.
Military strikes were launched against Iran by the U.S. and Israel in February 2026. Intermittent fighting has persisted since, marked by a brief memorandum in June and an April ceasefire brokered by Pakistan.
Ultimately, both agreements failed, leaving the region without an active ceasefire.
How is Iran using bitcoin?
Iran uses bitcoin and other cryptocurrencies to settle cross-border transactions through domestic crypto exchanges and to accept payments from ships passing through the Strait of Hormuz.
Why is Iran turning to cryptocurrency?
To keep its economy stable, bypass decades of international sanctions, and counter a naval blockade that has cut oil exports by more than 80%.
Can Bitcoin be frozen by authorities?
No, unlike centralized stablecoins such as Tether’s USDT, bitcoin is decentralized and has no single issuer, meaning it cannot be frozen.
What role does Iran’s central bank play?
The central bank has quietly encouraged traders to keep money flowing and asks no questions about how funds are transferred.
