The perception that Iran’s national currency, the rial, is actually approaching “zero” has brought the debate about trust in money in global markets back to the agenda. The cumulative effect of years of high inflation, weak growth and sanctions has eroded the purchasing power of the rial and radically changed the behavior of households and businesses. The events provide a striking example beyond a single country, showing why the search for alternatives accelerates when trust in fiat money is broken.
The Erosion of Trust in Iran Deepened
While wages in the Iranian economy have long eroded against inflation, sanctions have limited oil revenues and largely cut the country off from the global banking system. As official exchange rates ceased to reflect market reality, trade increasingly shifted to unofficial dollar pricing. In this environment, the rial began to lose its function as a measure of value.
Households act with defensive reflexes. On the day salaries are received, the tendency to turn to dollars, gold or durable consumer goods becomes stronger. This behavior shortens the time the rial is kept in circulation, accelerating its depreciation and creating a vicious circle. As trust decreases, abandonment accelerates.
Economists emphasize that what is happening is a common pattern in currency crises. When faith in money is damaged, rational choices focus on short-term preservation. The current situation in Iran reveals that trust is not only linked to price stability, but also to accessibility and predictability.
Why Does Bitcoin Come to the Agenda in Times of Crisis?
In periods when confidence in national currencies is shaken, public debate naturally expands to include alternatives. Talk of Bitcoin and stablecoins in Iran is read as a behavioral reaction rather than an approval. Their ability to work outside the banking system makes them stand out in times of crisis.
It cannot be said that this interest is risk-free. Sharp price fluctuations, regulatory uncertainty, technological access inequalities and legal risks pose significant obstacles. However, in times of heavy monetary pressure, people tend to put even flawed options on the table.
Past examples confirm this pattern. In 2013, the fear of deposits being confiscated in Cyprus triggered the search for alternatives, and Bitcoin reached its historical peaks in the same year. Similar debates arose during repeated devaluations in countries such as Argentina, Lebanon and Türkiye. Although the results varied, the common denominator was that fear increased interest.
