Iranians turn to stablecoins as rial plunges to new lows

Source: CryptoNewsNet Original Title: Iranians turn to stablecoins as rial plunges to new lows Original Link: Iran has seen a rise in stablecoin usage as its currency continues its steep decline this week as it dropped to trading at 1.42 million against the United States dollar before recovering slightly to around 1.38 million. The collapse erased household savings and pushed the prices of essential goods higher.

According to reports, inflation rose to 42.2% year over year in December, while food prices and health-related costs climbed to 72% and 50%, respectively.

The reports have worsened public frustration amid fears of hyperinflation. Demonstrations have expanded across several areas in Tehran and some major cities. Shopkeepers near the Grand Bazaar closed their stores and gathered in protest, adding their voices to the frustration of the masses.

Stablecoin usage on the rise in Iran as rial plunges

According to videos scattered online, there are several groups expressing discontent, though authorities dispute the timelines around the footage. Government officials have acknowledged the unrest, urging action to tackle economic concerns.

Parliament leadership has called for urgent measures to protect the Iranian rial, while also accusing foreign adversaries of taking advantage of the situation.

Despite these statements, security responses have been deployed in some areas. Meanwhile, Iranians are now swiftly turning to cryptocurrencies and stablecoins as the rial continues to lose value.

Most of them confirmed to have made the move to protect their purchasing power. Blockchain analysts have long tracked this trend in sanctioned economies, where access to traditional banking remains limited.

Iranians are particularly gravitating towards stablecoins pegged to the United States dollar, as they see it as a practical hedge against local currency declines, especially during periods of instability and rapid devaluation cycles.

The shift is also in line with Iran’s engagement with digital assets. According to earlier reports, Iran’s Ministry of Defense Export Center has signaled its intention to accept digital assets for payments for sales of arms overseas.

Blockchain analysis firms have also previously reported that sanctioned countries received more than $16 billion in digital assets in a single year, showing how digital assets and their underlying technology have been supporting cross-border transactions under pressure.

Geopolitical tensions and economic turmoil

The economic crisis has also caused significant changes in government leadership, with the Central Bank Governor resigning according to state media.

Meanwhile, renewed international sanctions in 2025 have further restricted access to global markets, intensifying capital flight.

Authorities have also announced temporary shutdowns across major cities, citing energy shortages and cold weather. Meanwhile, residents claim that despite the government shutdown, there has been a history of crypto firms tied to the administration carrying out energy-intensive operations.

Geopolitical risks have resurfaced with international warnings regarding nuclear and missile capabilities. Diplomatic channels remain open with potential for negotiated solutions.