The “Iran BRICS crypto strategy” is gaining traction as Iran moves to adopt cryptocurrencies for cross-border trade with the BRICS bloc. The country is under severe sanctions from the United Nations and the United States, and this initiative signals a new front in the global financial reshuffling.
1. What’s driving Iran’s move?
Iran has been subject to multiple layers of sanctions, including recent “snap-back” mechanisms that curtailed its access to global financial networks.
At its first official government-backed blockchain conference, the deBlock Summit, Parliament Speaker Mohammad Bagher Ghalibaf stated that crypto adoption is not optional — but essential for international trade.
With the traditional banking rails (like SWIFT) restricted, Iran sees digital assets and blockchain-based payment systems as alternatives.
2. How does the BRICS connection fit in?
The BRICS group (Brazil, Russia, India, China, South Africa) has been exploring alternatives to the U.S. dollar for international trade, and digital payments are part of that agenda.
Iran is positioning itself to trade with BRICS countries via crypto, inviting partners to accept digital currencies and help bypass sanctions.
However, it’s unclear how receptive all BRICS members are — for example, India has publicly said abandoning the dollar isn’t part of its agenda.
3. What specific strategy is Iran pursuing?
- Iran is advocating for settling international transactions in digital currencies rather than relying on traditional fiat and correspondent banking.
- The government is encouraging collaboration among universities, tech firms and legislators to build blockchain infrastructure.
- While crypto conversions and mining are regulated domestically (for example, the Central Bank of Iran restricts conversions of Rial to crypto), Iran is gradually opening up the possibility of mining and crypto enabling imports.
4. What are the benefits Iran expects?
- Sanctions evasion: Digital currencies and blockchain can provide a path around sanction-hit financial infrastructure.
- Lower dependency on the U.S. dollar: Aligning with BRICS payment-alternatives helps Iran further de-dollarise.
- Trade continuity: By enabling trade with partners despite sanctions, Iran can protect key economic links.
- Technological positioning: Becoming a regional blockchain hub may attract investment and innovation.
5. What are the major challenges and risks?
- Regulatory uncertainty: Industry insiders in Iran say the regulatory framework for crypto is not yet fully clear or transparent.
- Conversion bottlenecks: Converting digital currencies into useful fiat or goods remains difficult under sanctions.
- Energy and infrastructure constraints: Crypto mining and blockchain infrastructure demand energy and technological capacity; Iran must manage both.
- Geopolitical risk: Sanction regimes may target crypto-based workarounds; trade-partners may fear secondary sanctions.
- BRICS heterogeneity: Not all BRICS members are aligned on de-dollarisation or crypto adoption, limiting the pool of willing partners.
6. Implications for global markets and sanctions regimes
- If Iran’s strategy succeeds, it could undermine the leverage of standard sanction tools that rely on dollar-based banking and correspondent systems.
- It may accelerate crypto usage in trade among other sanctioned nations or those seeking to bypass dominant financial systems.
- Rising adoption of alternative payment systems by BRICS and allies may challenge the global financial order anchored on the dollar and Western-dominated banking infrastructure.
- On the flip side, regulatory crackdowns and monitoring of crypto flows will likely increase globally.
7. What to watch for next?
- Official agreements between Iran and BRICS states to accept digital currencies in trade settlements.
- Legislative or regulatory reforms from Iran clarifying crypto treatment.
- Technical roll-out of blockchain-based payment rails linking Iran with external partners.
- Responses from sanctions-imposing states (US, UN, EU) and potential counter-measures addressing crypto trade workarounds.
- Adoption metrics: trade volumes settled via crypto or blockchain channels involving Iran.
Conclusion
The “Iran BRICS crypto strategy” marks a bold attempt by Iran to rewrite its trade and financial relationships through digital assets and blockchain. The move ties into broader themes of de-dollarisation, alternative payment systems, and the reshaping of global trade networks. While the benefits could be significant for Iran, successful execution will hinge on clear regulations, partner cooperation, robust infrastructure and managing geopolitical backlash.
