- Iran is exploring the use of cryptocurrencies while urging BRICS nations to accelerate efforts to reduce dependence on the U.S. dollar.
- Crypto enables Iran to maintain its economic sovereignty and reduce its dependence on adversarial institutions, such as the U.S.-dominated global banking system.
Facing crippling economic sanctions from the U.S. and renewed pressure from the U.N. has made Iran increasingly lean into cryptocurrencies as a way to sustain international trade and generate revenue.
The deBlock Summit, Iran’s first international blockchain and cryptocurrency conference, was held on November 6–7, at the IRIB International Conference Center in Tehran, the nation’s capital. Dedicated to exploring blockchain and cryptocurrency innovation, the event featured a keynote speech by Mohammad Bagher Ghalibaf, Speaker of the Iranian Parliament.
During his address, Ghalibaf highlighted that digital currencies are increasingly being viewed not merely as technological tools but as strategic levers for economic independence.
He stated:
The global economy is moving towards multipolarity, and international cooperation within frameworks like BRICS has created strategic opportunities for nations. For the Islamic Republic of Iran, this framework can serve as a tool for financial exchange methods.
Ghalibaf further emphasized that the Iranian Parliament is ready to collaborate with academics, researchers, and businesses in this field. He underscored that using digital currencies for settlements is not a luxury but a necessity for nations under heavy financial restrictions, adding: “Independent nations can benefit from these new payment methods.”
Why Iran is Turning to Crypto
On 28 August, France, Germany, and the United Kingdom, often called the “E3”, officially initiated the snapback process under the 2015 Iran nuclear deal (JCPOA). The E3 accuse Iran of accumulating a large stockpile of highly enriched uranium (HEU), far beyond what the JCPOA allows.
The “snapback” is a pre‑agreed clause in UN Security Council Resolution 2231, which underpins the JCPOA.
Once triggered, it starts a 30-day period; if no new resolution or agreement is reached within that window, previously lifted UN sanctions are automatically reinstated.
These restored sanctions include a range of economic and security measures: arms embargoes, asset freezes, missile restrictions, and more.
Banking restrictions also tightened, and Iran found a way to sidestep traditional payment systems by using cryptocurrency. The digital currencies allow Iranian entities to engage in cross-border transactions even when regular channels like SWIFT are blocked.
Despite the ambition, Iranian industry insiders are cautious about the country’s crypto framework. Executives such as Ehsan Mehdizadeh, CEO of Wallex Iran, criticized the lack of transparency and clarity in Iran’s crypto frameworks. He argued that regulators still do not fully appreciate how blockchain works.
Also, the Central Bank of Iran (CBI) retains tight oversight over cryptocurrency activities. Hence, Iranians cannot freely convert the rial to digital assets on domestic exchanges. As a result, this limits the flow of crypto into and out of the country.
Notwithstanding these limitations, Iran benefits from very low electricity costs, making Bitcoin mining highly cost-effective. However, subsidized electricity for miners has sparked controversy from leaders like Shamseddin Hosseini, the head of Parliament’s Economic Committee, who has voiced concerns about the fairness of these energy policies.
Meanwhile, the BRICS economic bloc, comprising Brazil, Russia, India, China, Iran, the UAE, Indonesia, and South Africa, has been pushing to develop a cross-border payments system to reduce reliance on the U.S. dollar for over a decade. Tensions with the United States have further accelerated with President Donald Trump threatening 100% tariffs on BRICS nations, which only strengthened their motivation to pursue alternative systems.
Recommended for you:
Credit: Source link
