Key conclusions

• Iran’s 2025 currency collapse sharply reduced the purchasing power of the rial, destroying household savings, driving up prices and weakening confidence in the banking system.

• As fiat stress intensifies, public debate in Iran has broadened to include financial alternatives. Bitcoin has entered these discussions largely because it operates outside national monetary and banking frameworks.

• Historic cases from Argentina, Lebanon and Turkey show a repeating pattern. As national currencies lose credibility, public discourse pays more attention to digital assets.

• At the same time, major barriers limit the widespread adoption of Bitcoin. These include price volatility, unequal access to technology, regulatory uncertainty, legal risks and practical operational challenges.

When Iran’s national currency, the rial, fell to a record low against the US dollar, many Iranians saw the value of their life savings plummet. Prices of everyday goods have skyrocketed and confidence in the financial system has weakened.

As monetary pressure on the rial intensifies, public debate has expanded around the financial alternatives available during the currency crisis. In this context, Bitcoin (BTC) began to appear in discussions as a potential exit option.

This article examines when Bitcoin is discussed as an exit option during periods of financial crisis. It looks at the factors behind the Iranian rial’s decline in 2025, the debate around Bitcoin as a financial alternative, the comparative outlook for other economies under pressure, and the limits to wider Bitcoin adoption.

Iran’s currency collapse in 2025 and its structural causes

Iran’s currency difficulties have been long-standing, but recent events have increased the pressure. The rial has depreciated steadily for decades, with the rate of decline accelerating in the face of high inflation, sanctions and prolonged impoverished economic governance. As of December 30, 2025, Financial Times reported that since June 2025, the rial has lost more than 40% of its purchasing power, falling to approximately 1.4 million rials per US dollar.

The banking sector has problems complicated decline in the value of the rial. Iran’s central bank has warned that several domestic banks face potential dissolution if reforms are not implemented, and at least one major state-owned lender has already collapsed. These events stirred public anger and uncertainty, contributing to protests and political resignations, including the resignation of the central bank governor.

Extensive international sanctions imposed in response to Iran’s nuclear program and its support for regional militant groups have further strained the economy. These actions limit access to the US dollar and global financial networks, while weakening the domestic banking system.

The crisis escalated in October when Ayandeh Bank, one of Iran’s largest private lenders, collapsed after racking up $5.1 billion in losses and nearly $3 billion in debt. The assets of more than 42 million customers were absorbed by Bank Melli, the country’s largest state-owned lender.

Earlier in February 2025, the Central Bank of Iran warned that eight additional national banks faced potential dissolution if they did not undergo immediate reforms.

Bitcoin joins the conversation

Bitcoin is a digital asset that operates outside of national monetary systems. Its role in financial discussions often becomes more perceptible during periods of repeated failures in economic management. When confidence in a currency declines, public attention turns to alternatives that are not directly controlled by the same institutions.

Bitcoin’s design as a globally traded, decentralized asset independent of a single government makes it a common reference point in these debates. Although barriers to adoption still exist and uptake is not immediate or widespread, Bitcoin is often discussed as one possible alternative during periods of national monetary stress.

Did you know? During several currency crises, governments imposed limits on cash withdrawals before interest in cryptocurrencies increased.

A recurring pattern: lessons from Argentina to Iran

Iran is not the first country where stern currency tensions have coincided with increased discussion about cryptocurrencies.

In Argentina, decades of inflation and capital controls have pushed citizens toward shadow financial systems. The employ of cryptocurrencies has increased with the continued reliance on the US dollar and stablecoins. In Latin America, Argentina is among the countries with the highest level of cryptocurrency ownership 19.8% population with digital resources.

Lebanon sets another example. The 2019 banking collapse and subsequent hyperinflation severely damaged public confidence in the time-honored financial system. With bank accounts frozen, some people have turned to Bitcoin and other digital assets to bypass stringent bank controls.

Türkiye also experienced periods of high inflation that coincided with an raise in cryptocurrency trading volumes. As inflation intensified, some citizens turned to digital assets during periods of currency instability. Although adoption was not uniform across all segments of society, the level of activity was sufficient to attract the attention of regulators and the media.

Taken together, these cases point to a recurring pattern. When national currencies lose credibility, digital assets tend to enter public discourse. While the underlying conditions vary from country to country, the common cause is a decline in trust in fiat money.

Did you know? In inflationary economies, younger populations tend to discuss Bitcoin more often online, while older generations often prioritize physical assets such as cash and gold.

Why Bitcoin emerges during institutional failures

Bitcoin’s repeated appearance during financial crises can be attributed to several factors:

• Loss of confidence in government-issued currency: When purchasing power plummets, people begin to doubt whether money can reliably store value over time. This often leads them to look for alternatives, both time-honored and digital.

• Frustration with narrow financial systems: Sanctions, capital controls or bank failures may limit access to foreign currencies and global markets. In such environments, assets that operate outside of conventional payment systems attract attention.

• The distinction between symbolism and practicality: In many cases, stablecoins have more immediate applications than Bitcoin. In these scenarios, Bitcoin’s role is often more conceptual, serving as a reference point in discussions about financial independence rather than as a primary medium of exchange.

Did you know? In crisis economies, peer-to-peer bitcoin markets sometimes expand even as overall cryptocurrency ownership remains low, highlighting the gap between public discussion and actual employ.

Barriers to Bitcoin adoption

Despite the attention it is receiving, Bitcoin faces significant limitations in terms of adoption:

• Unequal access: Reliable internet connectivity, secure devices and technical knowledge are prerequisites that many people lack. Regulatory uncertainty further complicates adoption. While activities such as cryptocurrency trading may be permitted in some jurisdictions, rules regarding practices such as self-care may remain unclear.

• Variability: Another major limitation is price volatility. Bitcoin’s value can fluctuate wildly over brief periods, making it complex to compare with more stable alternatives during periods of acute financial stress.

• Legal and operational risks: Governments struggling with currency crises often tighten financial controls, and cryptocurrency users may face sudden restrictions. Security threats also persist. Stock market hacks, such as the $81 million hack of Nobitex in June 2025, add another layer of uncertainty.

What crisis narratives reveal about the future of money

Bitcoin’s emergence in discussions during the Iran currency crisis does not point to a single, unified solution. Instead, it reflects a broader shift in how individuals think about money during periods of extreme economic instability.

As seen in Argentina, Lebanon and Turkey, degenerating trust in time-honored financial systems is often associated with increased attention to digital assets. These discussions stem from a mixture of frustration and experimentation, although significant practical barriers remain.

Bitcoin’s presence in these debates suggests that monetary systems are no longer seen as fixed and immutable. During crises, people tend to look beyond national currencies, although their ability to access and employ viable alternatives varies greatly.