Iran's path to de-dollarization: When weapons begin to be settled with cryptocurrencies

When a country begins accepting cryptocurrency payments for arms orders, crypto assets are no longer simply a matter of "financial innovation" or a "gray market tool," but are formally incorporated into the national survival and international power dynamics. In January 2026, Iran's Ministry of Defense Export Center, Mindex, explicitly stated in official documents that its overseas military contracts could accept cryptocurrency, barter trade, or Iranian rials as payment methods. Arms trade has always been one of the most sanctioned, regulated, and sensitive cross-border transaction scenarios. Iran's decision to publicly include cryptocurrency as a payment option in this area signifies one thing: crypto assets are being systematically used by Iran as a "financial tool to resist sanctions." Driven by Realistic Constraints: Over the past few years, Iran has been under three highly realistic constraints: The local currency, the rial, has been depreciating for a long time, and the foreign exchange system is fragile. The international banking system has been largely cut off. Energy exports and military trade continue to face settlement and delivery risks. Against this backdrop, in 2025, Iranian Parliament Speaker Mohammad Bagher Ghalibaf publicly stated that without accepting cryptocurrencies, Iran would be unable to achieve its national goal of a 10% digital economy in GDP, and called for the prompt development of a national roadmap for crypto assets. This isn't technological idealism; it's a sober assessment formed under the reality of long-term sanctions—without the introduction of encryption, many economic goals simply cannot be achieved. The world's fourth-largest cryptocurrency mining center. In reality, Iran's dependence on crypto assets is far more radical than its statements suggest. On the one hand, Iran has become the world's fourth-largest cryptocurrency mining center. Thanks to substantial electricity subsidies, even rampant illegal mining has brought it considerable computing power and crypto assets. On the other hand, crypto assets are also deeply embedded in more sensitive areas. Israel's National Counter-Terrorism Financing Authority disclosed that addresses associated with the Iranian Islamic Revolutionary Guard Corps (IRGC) have received approximately $1.5 billion in USDT. While some addresses may belong to exchanges or sharing services, the sheer scale of this number is enough to illustrate that stablecoins are becoming a crucial liquidity vehicle for Iran to circumvent sanctions. A "Firefly" in the Dark In January 2026, due to protests and a currency crisis, Iran implemented a nationwide internet shutdown. This should have been a "fatal blow" to cryptocurrency trading, but the outcome was unexpected. In the absence of internet access, various offline or weak network solutions were quickly discussed and deployed: Starlink satellite network; Blockstream satellite network supporting global broadcasting of Bitcoin data; Bitchat Bluetooth mesh communication tool; Darkwire, a Bitcoin transmission solution without internet access; and Machankura, which supports sending and receiving Bitcoin over telecommunications networks. These solutions are not mature and cannot replace the internet on a large scale, but in such an extreme environment, the crypto industry has demonstrated its remarkable resilience. When traditional communication and financial systems fail simultaneously, crypto assets become a "last resort." The era of "strategic tools" is exemplified by Iran's experience, a microcosm of how nations survive under extreme sanctions. It demonstrates the unique geopolitical value of cryptocurrencies: bypassing traditional financial systems to transfer value and acquire strategic resources. Russia's oil trade, Venezuela's "shadow Bitcoin reserves," and now Iran's arms deals all point to an undeniable reality: cryptocurrencies are evolving from "financial tools" to "geopolitical tools," becoming a new medium connecting national strategies with the global economy.