The Iranian government’s decision to shut down internet access across the country on Thursday has plunged millions of crypto users into disarray during a time of escalating protests over the nation’s bleak economic realities. Iranians have taken to the streets in major cities, including Tehran, Mashhad, and Isfahan, as they voice their frustrations regarding rampant inflation and the devaluation of the Iranian rial, which has plummeted more than 800% against the US dollar since 2020.
With an estimated 7 million of Iran’s 92 million citizens using cryptocurrencies, the implications of this blackout are significant. According to data from Statista, approximately $3.7 billion in cryptocurrency flows were tracked in Iran between January and July 2025, indicating a burgeoning interest in digital assets as a potential refuge from traditional financial instability.
The economic unrest has already claimed at least 36 lives and resulted in over 2,000 detentions as security forces respond with increasing aggression to the demonstrators. As the situation becomes more severe, the government’s crackdown on communication channels, including internet access, is raising alarms about the future freedom of expression and access to information.
Reports confirm that internet traffic in Iran plummeted to virtually zero, effectively disconnecting the nation from the global network. In the wake of this upheaval, failed attempts to place calls from Dubai to Iran have surfaced alongside confirmations from Cloudflare Radar of widespread internet outages.
As the rial continues to deteriorate, cryptocurrencies like Bitcoin are being eyed as potential hedges against further inflation. Protesters are increasingly vocal about their calls for systemic change, with some expressing support for exiled Crown Prince Reza Pahlavi.
Exploring Alternative Access Solutions
Fortunately for Iranian crypto enthusiasts, alternative technologies could help maintain connectivity during this blackout. One such option is Elon Musk’s Starlink satellite internet service, which has been suggested as a solution to provide high-speed internet capabilities in areas devoid of traditional connectivity. There are appeals for Musk to expand Starlink operations in Iran, drawing parallels to similar measures implemented during a previous blackout in June 2025.
Another innovative solution comes courtesy of Blockstream, which operates a satellite network capable of broadcasting Bitcoin data globally without relying on internet infrastructure. These technological advancements could empower Iranian users to continue performing crypto transactions amid stringent government restrictions.
Navigating Challenges Ahead
Despite the potential gains from these technological solutions, various challenges hinder the broader adoption of cryptocurrencies in Iran. Regulatory hurdles pose a significant risk, as the government remains wary of cryptocurrencies and their acceleration in undermining its control over the economy.
Moreover, the technical intricacies associated with crypto usage might deter the average Iranian user, highlighting an urgent need for user-friendly Bitcoin wallets and exchanges specifically tailored for local consumers. Additionally, Bitcoin’s inherent price volatility means that its role as a secure asset is not guaranteed, particularly under current economic strains.
As the government unveils a monthly food coupon system to combat the rising cost of living, skepticism permeates the public discourse regarding the efficacy of these measures. Amidst the protests, the newly appointed army chief has issued stern warnings against potential foreign aggression, while the regime escalates its anti-Western rhetoric, further complicating the situation.
