Iran's government cut off internet access across the country on Thursday, January 8, 2026, as widespread protests erupted over worsening economic conditions and the collapse of the national currency. The blackout has directly impacted an estimated 7 million cryptocurrency users out of Iran's 92 million population, severely disrupting their ability to transact.
According to data from TRM Labs, approximately $3.7 billion in total cryptocurrency flows were tracked in Iran between January and July 2025, highlighting the significant role digital assets play in the country's economy. The protests, which have spread to major cities including Tehran, Mashhad, and Isfahan, were triggered by the Iranian rial hitting record lows against the US dollar. The currency has lost over 800% of its value since 2020, driving interest in Bitcoin as a potential hedge against hyperinflation.
Cloudflare Radar confirmed a near-total internet shutdown in Iran, with traffic dropping effectively to zero. The protests have turned violent, with reports of at least 36 deaths and over 2,000 detentions as security forces attempt to suppress demonstrations.
In response to the connectivity crisis, attention has turned to alternative technologies that could enable crypto transactions without traditional internet access. Elon Musk's Starlink satellite internet service is one potential solution, with calls for its deployment similar to a previous blackout in June 2025. Unconfirmed reports suggest Musk may have quietly granted the request.
Another option comes from Bitcoin infrastructure company Blockstream, whose satellite network can broadcast Bitcoin data worldwide without requiring an internet connection. Furthermore, tools like the peer-to-peer messaging service Bitchat (which uses a Bluetooth mesh network) and other developing solutions like Darkwire (using long-range radio) and Machankura (leveraging mobile telecom networks) demonstrate ongoing innovation for offline crypto use. Bitwise CEO Hunter Horsley has suggested that Bitcoin could serve as a store of wealth for Iranians facing currency devaluation.
Despite these technological workarounds, significant challenges remain for crypto adoption in Iran, including government regulatory restrictions, technical complexity for average users, and Bitcoin's inherent price volatility.
