Iran’s Rial Plunges to All-Time Low, Bitcoin Offered as Solution
Iran’s currency, the Rial, has collapsed to a historic low of 1.42 million rials per US dollar, sparking widespread protests across the country. The sharp depreciation has led to a significant escalation in demonstrations, with merchants shuttering shops in Tehran and other major cities. The situation has become so dire that Central Bank Governor Mohammad Reza Farzin resigned on Monday, while security forces clashed with protesters demanding immediate government intervention to stabilize the economy.
Nationwide Strikes and Protests
Shopkeepers in Tehran’s Grand Bazaar and central commercial districts closed their businesses for two consecutive days, as protests spread to other cities like Isfahan, Shiraz, and Mashhad. Merchants in the iron market, electronics centers, and mobile phone trading hubs gathered outside shuttered shops, chanting slogans and demanding an end to economic mismanagement and currency collapse. Security forces deployed tear gas and batons in downtown Tehran, but protesters pushed back, forcing police to retreat from several areas.
According to reports, people are demanding an end to economic mismanagement, currency collapse, and soaring inflation. Merchants and citizens are expressing frustration over rising living costs and the inability to conduct normal business amid financial instability. The situation has become so dire that President Masoud Pezeshkian instructed his interior minister to engage protesters through dialogue, while Chief Justice Gholamhossein Mohseni Ejei called for swift punishment of those responsible for currency fluctuations.
Economic Crisis Deepens
Iran’s economic conditions have deteriorated sharply throughout 2025, with inflation reaching 52.6% year-over-year in December, according to official data. Food prices have surged 72%, and medical items have climbed 50% from the previous December, making imported essentials increasingly unaffordable. The currency traded at approximately 32,000 rials per dollar when the 2015 nuclear accord lifted sanctions, but it has deteriorated significantly since then.
The situation worsened after June’s 12-day war with Israel damaged infrastructure and diverted resources toward reconstruction. September’s UN snapback mechanism also froze Iranian assets abroad and reimposed nuclear-related penalties. Unemployment remains high among youth, and structural imbalances are affecting the banking, pensions, and environmental sectors. The government has introduced a third gasoline price tier, raising concerns about accelerating inflation despite Iran maintaining some of the world’s cheapest gasoline.
Bitcoin as a Solution
Hunter Horsley, CEO of Bitwise, pointed to Bitcoin as a form of protection against such monetary failures. “Economic mismanagement — the story of the past, present, and future,” he said. “Bitcoin is a new way for the people to protect themselves.” Bitcoin traded near $87,000 today, maintaining stability while traditional markets marked down tech stocks. The cryptocurrency’s resilience during global economic uncertainty has reinforced arguments for decentralized alternatives to state-controlled currencies facing systemic collapse.
As the situation in Iran continues to unfold, it remains to be seen how the government will respond to the economic crisis and the growing demands for change. However, one thing is clear: the Iranian people are seeking solutions to the country’s economic woes, and Bitcoin is being offered as one possible answer. For more information, visit the original source: https://cryptonews.com/news/bitcoin-offered-as-solution-after-irans-rial-plunges-to-all-time-low/
