Iran widens crypto use as sanctions bite

Iran is allowing exporters and importers to use cryptocurrencies such as Tether's USDT and Bitcoin to settle cross-border transactions amid growing US sanctions. This policy shift enables businesses to repatriate export earnings outside the central bank's official foreign-exchange platform and directly use the proceeds to pay for imports.

Crypto transactions have become a route for moving value across borders when traditional bank transfers, dollar clearing, and correspondent banking are constrained. By relaxing these rules, Tehran aims to keep commercial payments functioning as Washington strengthens sanctions against finance, oil, shipping, aviation, and digital assets.

While Bitcoin offers another settlement option, its price volatility makes it less reliable for businesses handling invoices and working capital. However, the expanded crypto use also comes with substantial risks, as the US Treasury has intensified its action against cryptocurrency infrastructure linked to Iran. In July, the US Treasury added four cryptocurrency addresses associated with the Central Bank of Iran to its sanctions listings, which froze about $131 million worth of USDT balances.

Despite the risks, Iran's crypto economy was already substantial before this easing, with blockchain analytics estimating cryptocurrency activity connected to Iran to exceed $7.78 billion in 2025.