Iran Central Bank Promotes Cryptocurrency for Trade Amid US Sanctions

This development highlights the growing use of digital currencies as a workaround for traditional financial systems under geopolitical stress.

• Iran's central bank directed businesses to use bitcoin and Tether (USDT) for repatriating export proceeds to evade sanctions.
• US Treasury intensified sanctions targeting Iran's digital asset sector, freezing nearly $1 billion in assets since April 2026.
• Crypto activity linked to Iran reached approximately $10 billion in 2025, indicating a significant reliance on digital currencies for trade.

• Long-standing sanctions: Iran has faced extensive US and international sanctions for decades, limiting access to global banking systems.
• Crypto as a solution: The Iranian government and businesses have increasingly turned to cryptocurrencies as a means to facilitate cross-border trade amid these restrictions.
• US response: The US Treasury's Operation Economic Outcast aims to disrupt Iran's digital asset channels, complicating the landscape for crypto transactions linked to the country.

In September 2026, the Financial Times reported that Iran's central bank has officially instructed businesses to utilize cryptocurrencies, specifically bitcoin and Tether (USDT), for repatriating export proceeds. This policy shift comes as a direct response to the ongoing US-Iran conflict and the blockade measures that have severely restricted access to conventional banking channels. The Iranian regime has recognized cryptocurrency as a viable settlement mechanism for cross-border trade, with blockchain analytics firms estimating that Iran's crypto activity reached approximately $10 billion in 2025.

The backdrop of this development is a long history of comprehensive sanctions imposed on Iran, which have intensified due to geopolitical conflicts, including a recent war with the US. These sanctions have effectively excluded Iranian entities from the SWIFT network and other global banking systems, prompting both state and private actors to explore alternative methods for value transfer. Reports indicate that Iranian crypto volumes have been substantial, with estimates ranging from $7.8 billion to $11.4 billion annually from 2024 to 2025.

In early 2026, amid escalating tensions, Iran's central bank relaxed its enforcement of foreign currency repatriation rules, explicitly allowing cryptocurrency settlements through domestic exchanges. This policy change was confirmed by regime insiders and analysts, who noted the utility of Tether for maintaining stable value and bitcoin for liquidity derived from mining operations. Concurrently, the US Treasury has ramped up its efforts to target these digital asset channels, designating Iranian exchanges and implementing wallet sanctions. The launch of Operation Economic Outcast on August 24, 2026, marked a significant escalation, with the US Treasury coordinating freezes with Tether that totaled over $475 million linked to the Iranian central bank.

As a result of these sanctions, Iranian exchanges have seen a decline in monthly inflows, dropping from peaks of $2.1 billion in late 2024 to just $510 million in the first quarter of 2026. Despite the tightening of sanctions, Iranian business executives have described the receipt of cryptocurrency as "totally established," indicating a shift in the operational landscape for trade and finance in the region.

• Iranian businesses: They will need to adapt to using cryptocurrencies for international transactions, impacting their operational strategies.
• Crypto exchanges: Platforms facilitating Iranian transactions may face increased scrutiny and regulatory risks, particularly in regions like Dubai.
• International traders: Companies engaging with Iranian markets must navigate the complexities of compliance with evolving sanctions and digital asset regulations.

• US Treasury actions: Monitor any further sanctions or designations targeting Iranian digital asset channels, as these will impact the viability of crypto transactions.
• Crypto market trends: Watch for shifts in cryptocurrency prices and trading volumes linked to Iranian activity, which could signal broader market implications.
• Regulatory developments in the UAE: Keep an eye on how UAE authorities respond to Iranian-linked transactions, as this could affect compliance costs for local businesses.