Iran’s currency (Rial) collapsed to a historic low of 1.42 million rials per US dollar over the weekend, triggering the country’s largest protests in three years as merchants shuttered shops across Tehran and other major cities.
The sharp depreciation prompted Central Bank Governor Mohammad Reza Farzin to resign on Monday, while demonstrators clashed with security forces demanding immediate government intervention to stabilize the economy.
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.“
Nationwide Strikes Grip Commercial Centers
Shopkeepers in Tehran’s Grand Bazaar and central commercial districts closed their businesses for two consecutive days starting Sunday, as protests spread to Isfahan, Shiraz, and Mashhad.
Merchants in the iron market, electronics centers, and mobile phone trading hubs gathered outside shuttered shops, chanting “Don’t be afraid, we are together” and “Death to the dictator.“
Security forces deployed tear gas and batons in downtown Tehran as demonstrators pushed back, forcing police to retreat from several areas.
Videos circulated online showed protesters attacking a cleric’s vehicle while others inside shopping complexes shouted anti-government slogans.
State media acknowledged the unrest but characterized it as solely an economic grievance rather than broader dissatisfaction with the Islamic regime.
The demonstrations marked a significant escalation from recent protests, mobilizing traditional government supporters like bazaar merchants whose participation historically signals deeper instability.
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.
The IRGC-run Fars News Agency reported small cells of protesters chanting slogans beyond economic demands, suggesting coordination efforts.
Economic Crisis Deepens Under Multiple Pressures
Iran’s economic conditions deteriorated sharply throughout 2025, with inflation reaching 52.6% year-over-year in December according to official data, though critics view the pace of increases as approaching hyperinflation.
Food prices surged 72%, and medical items climbed 50% from the previous December as the rial’s depreciation made imported essentials increasingly unaffordable.
The currency traded at approximately 32,000 rials per dollar when the 2015 nuclear accord lifted sanctions, before deteriorating following President Donald Trump’s 2018 withdrawal and subsequent reimposition of maximum pressure sanctions.
The situation worsened after June’s 12-day war with Israel damaged infrastructure and diverted resources toward reconstruction, while September’s UN snapback mechanism froze Iranian assets abroad and reimposed nuclear-related penalties.
Unemployment remained high among youth as structural imbalances affected banking, pensions, and environmental sectors.
The government introduced a third gasoline price tier on Saturday, the first major fuel adjustment since 2019 price hikes sparked deadly protests.
Motorists now pay over three times the subsidized rate for purchases above 160 liters per month, raising concerns about accelerating inflation despite Iran maintaining some of the world’s cheapest gasoline.
President Pezeshkian announced fundamental reforms to the monetary and banking system while replacing Farzin with former economy minister Abdolnaser Hemmati, who was previously dismissed by parliament in March due to the rial’s sharp depreciation.
“The livelihood of the people is my daily concern,” Pezeshkian said on X.
“I have tasked the Minister of the Interior to hear the legitimate demands of the protesters through dialogue with their representatives so that the government can act with all its might to resolve problems.“
Exiled Crown Prince Reza Pahlavi advocated for regime change through civil disobedience, with some gatherings displaying monarchical symbols.
Former Israeli Prime Minister Naftali Bennett and former Secretary of State Mike Pompeo also voiced support for protesters, with Pompeo stating the regime “has ruined what should be a vibrant and prosperous country with its extremism and corruption.”
As Cryptonews reported, Bitcoin traded near $87,000 today as year-end trading slowed, maintaining stability while traditional markets marked down tech stocks.
The cryptocurrency’s resilience during global economic uncertainty reinforced arguments for decentralized alternatives to state-controlled currencies facing systemic collapse, with even Brian Armstrong, CEO of Coinbase, confirming yesterday that “Bitcoin provides a check and balance on the dollar,” citing rising deficits or inflation.
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