Iran is cut off from the internet: Here’s how crypto could still work

Overview

Recent protests in Iran have emerged due to deteriorating economic conditions, particularly as the Iranian rial has reached unprecedented lows against the US dollar. This situation has raised questions about how cryptocurrencies may still function amidst disruptions, including a significant cut-off from the internet.

Background of the Protests

The protests in Iran were ignited by a combination of factors, primarily stemming from worsening economic conditions. Citizens have expressed their frustrations as the Iranian rial, the country’s national currency, has plummeted in value, hitting record lows against the US dollar. This economic instability has created a climate of discontent, prompting widespread demonstrations across various cities in the nation.

The protests signify more than just dissatisfaction with the currency; they reflect a broader discontent with the government’s handling of economic policies and the overall situation in the country. As the rial’s value decreases, purchasing power diminishes, leading to increased hardship for many Iranians. The economic strife has become a catalyst for public outcry, resulting in significant unrest.

The Role of Cryptocurrencies

In the face of internet disruptions, the potential for cryptocurrencies to operate remains a critical consideration. Despite the challenges posed by limited online access, cryptocurrencies offer a decentralized alternative that can function independently of traditional banking systems. This characteristic may provide a means for individuals to transact and preserve value even under restrictive circumstances.

The decentralized nature of cryptocurrencies allows users to engage in transactions without the need for intermediaries, which can be particularly advantageous in times of economic turmoil. For many in Iran, cryptocurrencies may serve as a hedge against the declining rial and provide a mechanism for transferring value outside the control of the government.

From author

The situation in Iran highlights the intersection of economic distress and technological solutions that cryptocurrencies can provide. While the protests reflect a deep-seated frustration with the current economic climate, they also underscore the potential for cryptocurrencies to offer an alternative pathway for individuals seeking to navigate financial challenges. The resilience of cryptocurrencies in the face of adversity could empower citizens to maintain economic agency, even when traditional systems are compromised.

Impact on the crypto market

• The unrest in Iran may lead to increased interest in cryptocurrencies as a means of preserving wealth amid currency devaluation.
• A potential rise in peer-to-peer transactions could emerge as individuals seek alternatives to traditional banking systems.
• The situation highlights the importance of decentralized finance solutions, which may gain traction in similar economic climates.
• Increased adoption of cryptocurrencies may occur as citizens look for safe haven assets during periods of instability.
• The events in Iran may serve as a case study for other nations facing economic crises, potentially influencing global attitudes towards cryptocurrencies.