Report: Iran Still Turning to Bitcoin to Bypass Sanctions and Stabilize Economy

Iran is reportedly continuing to use bitcoin as a workaround for sanctions, with the country's central bank choosing not to intervene.

According to the Financial Times report from Wednesday, the Middle Eastern nation is using cryptocurrencies such as bitcoin to handle international transactions via Iranian crypto exchanges. This follows guidance from the central bank urging citizens to take any steps that could support the economy.

The publication, drawing on discussions with companies, government insiders and analysts, stated that the central bank had “quietly encouraged traders” to keep funds moving in order to aid the struggling economy.

Bitcoin is emerging as a reliable method for achieving this.

One business source reportedly told the newspaper that the central bank does not inquire about the means of transferring money.

Iran has faced sanctions for decades. A sharp tightening that began in late 2025 — via a UN snapback, EU restrictions and expanded US energy sanctions — was then worsened by conflict with the US and Israel that started in February 2026, plus a naval blockade that has slashed oil exports by over 80%.

The country also has one of the world's highest inflation rates.

Earlier this year, Iran launched a bitcoin-backed insurance service for its national shipping companies.

In July, the US said it had frozen cryptocurrency linked to the Iranian government, mostly in Tether's stablecoin.

Stablecoins such as Tether's USDT can be frozen by the issuing firm, but bitcoin — being decentralized and having no single issuer — cannot be.

The US Treasury's Office of Foreign Assets Control stated in July that Iran had been evading sanctions by taking bitcoin as payment from ships traveling through the Strait of Hormuz.

OFAC noted at the time that Hormuz Safe, created by Iran's Ministry of Economy, “accepts payment in Bitcoin and other digital assets” in order to circumvent sanctions.

The US and Israel struck Iran in February 2026. Fighting has continued in phases since, broken by a Pakistan-brokered ceasefire in April and a short-lived memorandum in June.

Both ultimately collapsed, and no ceasefire exists at present.