Iran Uses Bitcoin to Skirt Sanctions and Stabilize Economy

Iran uses Bitcoin — Iran is reportedly continuing to use Bitcoin to facilitate cross-border trade and stabilize its economy, with its central bank tacitly encouraging the practice to circumvent international sanctions.

Citing conversations with business insiders and analysts, a Financial Times report states that Iranian authorities are turning a blind eye as businesses use cryptocurrencies, including Bitcoin, to settle international transactions through local crypto exchanges. This move aims to get money flowing into the struggling economy amid a crippling naval blockade that has slashed oil exports by over 80%.

The country has faced a sharp escalation in sanctions since late 2025, including UN snapback measures and expanded U.S. energy sanctions. In July 2026, the U.S. Treasury’s Office of Foreign Assets Control (OFAC) stated that Iran was dodging sanctions by accepting Bitcoin payments for a shipping insurance service operated through the Strait of Hormuz.

The report underscores Bitcoin’s utility as a censorship-resistant tool in a high-inflation environment under heavy sanctions, contrasting it with stablecoins like Tether’s USDT, which can be frozen by the issuer. Iran began a Bitcoin-backed insurance service for its shipping companies earlier in 2026.