The Iranian rial has collapsed to a historic low of approximately 1.63 million per U.S. dollar as of February 19, 2026, having lost roughly 75% of its value over the past year. This dramatic depreciation, driven by sanctions, restricted trade, and domestic policy strain, has eroded household savings and triggered an economic crisis drawing direct comparisons to Lebanon's 2019 banking collapse.
In a pattern mirroring Lebanon's experience, where the local currency lost over 90% of its value, Iranians are losing confidence in banks and the national currency. This has accelerated a "digital flight" to cryptocurrencies as a practical tool for preserving wealth. Reports estimate Iran's crypto transaction activity reached between $7.78 billion and $10 billion in 2025, reflecting a growing reliance on digital assets for cross-border transfers and savings.
The adoption is bifurcated. On one hand, middle-class households are converting savings into Bitcoin and stablecoins, moving funds into self-custody wallets to avoid potential bank freezes and capital controls. Blockchain data shows spikes in Bitcoin withdrawals to personal wallets during periods of social unrest, indicating capital flight. On the other hand, state-linked entities are also active; the Central Bank of Iran reportedly acquired over $500 million in USDT in 2025 to facilitate sanctioned trade, while the Islamic Revolutionary Guard Corps (IRGC) is estimated to account for half of the country's on-chain activity.
The crisis has severe social impacts, with inflation estimated between 40-50%, making staple goods unaffordable and fueling outward migration of professionals and students. The situation underscores a key lesson from Lebanon: when banking access tightens and trust erodes, cryptocurrencies transition from speculative instruments to essential financial tools for savings and remittances.
