Iran’s Push for Crypto Trade Amid Sanctions
Iran is actively pursuing cryptocurrency adoption as a means to bypass international sanctions, according to recent statements from government officials. The country has reportedly urged India and other BRICS nations to accept digital assets for trade settlements. This move comes as Iran faces renewed sanctions from France, Germany, and the United Kingdom following allegations of increased uranium enrichment activities.
Mohammed Bagher Ghalibaf, Speaker of the Iranian Parliament, spoke at the government-backed deBlock Summit about the country’s ambitions. “Cryptocurrencies provide new ways to do business and to pay for trade,” Ghalibaf stated. “So, they can support independent nations. We want Iran to become a regional, and even global hub in blockchain technology and digital trade.”
The De-Dollarization Strategy
Pooria Asteraky, chairman of the deBlock Summit, framed digital assets as a technological tool for achieving de-dollarization goals. He argued that cryptocurrencies could help reduce reliance on the U.S. dollar in international trade because they operate independently of any single government or political bloc. This aligns with BRICS’ broader objectives of reducing dollar dominance in global finance.
However, the U.S. has expressed strong opposition to such moves. President Donald Trump has repeatedly warned BRICS nations against forming alternative currencies and moving away from the dollar, even threatening tariffs if they proceed with such plans.
Regulatory Challenges and Private Sector Concerns
Despite the government’s enthusiasm, the private sector remains skeptical about Iran’s readiness for widespread crypto adoption. Ehsan Mehdizadeh, CEO of Wallex Iran, the country’s largest cryptocurrency exchange, highlighted regulatory shortcomings during a panel discussion.
“There is not a proper transparent regulatory environment for blockchain or cryptocurrencies to prosper,” Mehdizadeh noted. He pointed out that regulators lack sufficient understanding of blockchain technology, creating barriers to effective implementation.
The central bank serves as the sole regulator for Iran’s crypto market and has imposed several restrictions, including blocking gateways that convert Iranian rials into digital assets. While crypto mining has been permitted, policymakers continue to question how to properly regulate the sector.
Sanctions Context and Payment System Isolation
Iran’s interest in cryptocurrencies stems from its long-standing isolation from international financial systems. The country has been cut off from the SWIFT payment network due to U.S. sanctions that date back to at least 1979. This financial isolation makes alternative payment systems particularly attractive.
Mehdizadeh acknowledged the potential benefits, stating, “The SWIFT payment system has been cut off for us, so perhaps cryptocurrencies and blockchain can help. Digital and crypto currencies are one way to get around sanctions.”
Yet the path forward remains uncertain. The tension between government ambitions and regulatory realities suggests that Iran’s crypto adoption journey will face significant hurdles. The country must balance its desire for financial independence with the need for stable, well-regulated systems that can support international trade.
