The post Iran’s Rial Hits Historic Low as Inflation Sparks Unrest appeared first on Coinpedia Fintech News

Iran’s economic pressure reached a breaking point in December 2025 as the rial slid to a historic low of nearly 1

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Bitcoin Enters the Conversation

Against this backdrop, Bitwise CEO Hunter Horsley pointed to Bitcoin as another way people attempt to shield themselves from economic mismanagement. He described Bitcoin as a tool that exists outside government control, offering individuals a way to protect their savings when national systems fail.

The idea is not unique to Iran, as per Alex Gladstein of the Human Rights Foundation. Across inflation-hit economies, Bitcoin and stablecoins are increasingly used as alternatives to weakening local currencies. Similar patterns have been seen in Argentina, where citizens turned to crypto as the peso deteriorated.

A Hedge, Not a Cure

Bitcoin’s fixed supply and independence from domestic monetary policy make it appealing during currency crises. However, it is not without risks. Volatility, access restrictions, and regulatory pressure remain real barriers, especially in countries facing strict controls.

Still, Iran’s deepening crisis highlights why Bitcoin continues to resurface in moments of monetary collapse, not as a perfect solution, but as a reflection of lost trust in traditional systems.

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FAQs

Why is Iran’s currency collapsing in 2025?

Iran’s rial is falling due to high inflation, sanctions, weak oil revenues, and low trust in monetary policy, which have steadily eroded its value.

How is inflation affecting daily life in Iran?

Rising inflation has sharply increased food, medical, and housing costs, making basic necessities unaffordable for many Iranian households.

Is Bitcoin legal and usable in Iran right now?

Bitcoin use exists but faces restrictions. Many still access it informally to hedge savings, despite regulatory limits and technical barriers.

Can Bitcoin really protect people during currency crises?

Bitcoin can help preserve value long term, but price volatility and access issues mean it’s a hedge, not a guaranteed or risk-free solution.