As the rial plunges, middle-class Iranians are bypassing banks and moving billions into the domestic crypto market, with Bitcoin absorbing much of that demand. The shift mirrors Lebanon’s past capital flight and raises fresh regulatory and market questions.
Iran reportedly bought $507 million worth of USDT to shore up the plunging rial, using the dollar-pegged stablecoin as a liquidity tool and safe haven amid strict foreign-exchange controls.
The Iranian rial plunged to a record low, spurring protests and driving many citizens to use stablecoins to protect savings and access foreign currency. Analysts say a near-term recovery looks unlikely without a clear economic plan.
Iran’s rial has plunged to roughly 1 million per US dollar amid skyrocketing inflation and sharp market swings, raising questions about whether Bitcoin can serve as a lifeline during internet blackouts.
As the rial plunges to fresh lows, Bitcoin has re-entered public debate in Iran, often cited for its decentralized properties compared with state-controlled fiat. Citizens and remittance senders are increasingly discussing crypto as an alternative store of value and cross-border payment tool.
Usage of dollar-pegged stablecoins has surged in Iran as the rial plunged to roughly 1.42 million per USD before easing to about 1.38 million, eroding household savings and pushing up essential prices.