Quick Breakdown
- Iran’s rial has plunged to record lows, sparking protests in Tehran and forcing the central bank governor to resign.
- Bitcoin advocates argue the crisis highlights crypto’s role as a hedge against currency collapse, despite strict mining regulations.
- Iran’s banking system faces mounting risks, with multiple banks under threat of bankruptcy or dissolution.
Protests broke out across Tehran on Monday after Iran’s currency plunged to historic lows, deepening public anger over economic mismanagement and eroding household savings.
The Iranian rial has now weakened to around 1.4 million per US dollar, marking one of the sharpest currency declines in its history. Many Iranians blame the collapse on poor central bank policies, compounded by sanctions and recent regional conflicts.
Currency crisis fuels public outrage
The protests come just months after Iran’s brief but costly military confrontation with Israel in June, a period during which the rial lost more than 40% of its purchasing power. According to the Financial Times, the scale of the decline highlights decades of structural weakness in Iran’s monetary system.
1.42 million rial per dollar
The official rate in the early 1980s was **70 per dollar** https://t.co/Sor7WEQnQ8
— Alex Gladstein 🌋 ⚡ (@gladstein) December 30, 2025
Alex Gladstein, chief strategy officer at the Bitcoin-focused Human Rights Foundation, underscored the long-term erosion of value, noting that in the early 1980s, the official exchange rate stood at just 70 rials per dollar.
Political pressure intensified further after Central Bank Governor Mohammad Reza Farzin resigned, injecting new uncertainty into an already fragile economic environment.
Bitcoin emerges as a store-of-value argument
Amid the turmoil, Bitcoin advocates have pointed to the crisis as proof that decentralized assets matter. Bitwise CEO Hunter Horsley said Bitcoin offers people worldwide a way to protect themselves from collapsing currencies.
While cryptocurrency trading is legal in Iran, regulations around self-custody remain unclear, and Bitcoin mining faces heavy government oversight.
Mining crackdowns and missed opportunities
Despite Iran’s access to heavily subsidized electricity, which could allow Bitcoin mining at an estimated $1,300 per BTC, authorities have cracked down on unregistered miners.
VanEck’s head of research, Matthew Sigel, criticized the policy approach, noting that Iran has even offered cash rewards to citizens who report illegal mining operations, just as demand for alternative stores of value is rising.
Banking sector under growing strain
The currency collapse is also exposing deep fractures in Iran’s banking system. In October, state-owned Bank Melli reportedly went bankrupt, placing the savings of more than 42 million Iranians at risk.
Further damaging confidence, Iran’s largest crypto exchange, Nobitex, suffered an $81 million hack in June, after which crypto transaction volumes fell by 11% amid escalating tensions with Israel.
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