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The decline of Iran’s rial reflects Lebanon’s situation, leading residents to adopt bitcoin.
As the rial collapses, middle-class savers are turning away from local banks to inject billions into the domestic crypto space.
People waving pre-1979 Iranian flags gather to protest for the overthrow of the current Iranian regime in front of the Brandenburg Gate, on February 7, 2026 in Berlin, Germany. (Photo by Omer Messinger/Getty Images)
The rial, which serves as Iran’s official currency, has collapsed in 2026. Hyperinflation erodes savings on a daily basis. Sanctions compound poor decisions and relentless geopolitical pressures. Each day, individuals find their funds diminishing. Households struggle to obtain essentials as their savings evaporate. This situation mirrors the crisis experienced by Lebanon, which began in late 2019. The same banking restrictions, the same devaluation of currency, and the same urgent quest for assets that retain value. Bitcoin emerged as a financial refuge during that time, and indications suggest it may serve a similar role in Iran now.
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Lebanon reached a breaking point when banks tightly restricted access to accounts. Dollar savings became inaccessible and then severely devalued into a pound that continued to plummet. Over 90 percent of funds have disappeared. Lines at ATMs turned into scuffles. Protests erupted nationwide. Remittances from family members abroad became the sole means of support, but even those funds faced delays and incurred high fees.
Iran is experiencing a similar stranglehold. Sanctions have interrupted standard trade. Inflation is rampant. Reports indicate that crypto activity approached $8 billion in 2025. Individuals quickly transfer Bitcoin to personal wallets out of fear of account freezes or further declines. Even the central bank is acquiring stablecoins such as Tether to navigate restrictions.
In Lebanon, perceptions shifted rapidly. Individuals who previously disregarded Bitcoin began to flock to it as other options failed. Peer-to-peer trading surged, particularly within Telegram groups. No banks were necessary. Remittances arrived without issues. Local shops accepted it for essentials like bread or fuel. An entire underground economy persisted while the official system collapsed.
The raw reality of Lebanon’s breakdown
Banks did not merely slow down withdrawals; they deducted amounts from deposits. Promised dollars transformed into local currency that held almost no value. Trust evaporated overnight. Individuals who had planned meticulously lost retirement savings, business funds, and everything accumulated over decades.
Bitcoin provided a solution. It enabled holders to retain an asset impervious to policy changes or inflation. Maintaining private keys on hardware wallets ensured genuine control. Users could verify transactions independently. Remittances traversed borders swiftly, without intermediaries taking a cut. Price fluctuations occurred, yet over time it performed significantly better than the pound ever could.
Challenges remained significant. Power outages were frequent. Internet access was unreliable. Outside Beirut, liquidity was scarce. Initially, many suffered losses due to untrustworthy services because they lacked knowledge. However, communities quickly formed. Online discussions and meetups in cafés became common. Individuals educated one another: back up recovery phrases correctly, run personal nodes, avoid custodians. The crisis necessitated rapid learning. The most important takeaway was clear: entrusting Bitcoin to others meant risking loss due to hacks, freezes, or sudden regulatory changes. True ownership signifies control over keys.
What Iran can learn from Lebanon’s experience
Iran is following a similar trajectory. Protests reveal the mounting frustration. The rial continues to decline. Onchain data illustrates that individuals are shifting to self-custody to prevent seizures or worse inflation.
Government communication is inconsistent. Restrictions on mining conflict with trials involving crypto for imports. For ordinary individuals, however, Bitcoin remains straightforward: transfers are unimpeded, no borders restrict it, and its value exists outside of state control. Stablecoins facilitate daily transactions, while Bitcoin serves as a store of value.
Strategies that proved effective in Lebanon can be directly applied. Identify a trustworthy non-custodial wallet and securely back up your recovery phrase. Establish a network of peer-to-peer contacts for facilitating fiat transactions. These fundamental practices enabled the Lebanese populace to endure the worst circumstances and offer a similar opportunity in Iran.
Of course, challenges persist: regulations frequently change, internet connectivity is inconsistent, and prices can fluctuate. Nevertheless, it is preferable to avoid total dependence on a currency that continues to fail. Lebanon demonstrated that waiting for government intervention seldom yields results. Proactive measures preserved what could be salvaged.
Getting control back when systems fail
Lebanon and Iran illustrate how swiftly centralized finance can collapse. Excessive money printing, account restrictions, and economic isolation consistently impact innocent citizens. Bitcoin alters the paradigm: no approvals needed, and the risk remains solely with those who control the keys.
The economic collapse in Lebanon has permanently transformed its financial landscape. Currency shifted from a medium of exchange to a survival mechanism, compelling citizens to educate themselves about custody and true ownership. Iran is now confronted with the same lesson: rely on failing banks or adopt the tool that restores power.
The significant decline of the rial signifies more than mere instability. It signals the need for transformation. Lebanon produced resilient individuals who grasped the meaning of ownership. Iran has a similar opportunity. Act before more resources disappear. Verify everything independently. Accumulate assets. Maintain tight control of the keys. Achieve genuine freedom. No one will give it to you; you must reclaim it, one satoshi at a time.
