Iran Internet Shutdown Raises Question: Can Crypto Still Function?

TheNewsCryptoPublished on 2026-01-09Last updated on 2026-01-09

Abstract

The Iranian government has implemented a nationwide internet shutdown in response to widespread protests, raising questions about cryptocurrency's functionality under extreme connectivity restrictions. With approximately 7 million Iranians using crypto and $3.7 billion in tracked crypto flows linked to Iran in early 2025, the shutdown severely disrupts transactions. Potential solutions include satellite internet services like Starlink, which previously restored access during blackouts, and Blockstream's satellite network for broadcasting blockchain data. Decentralized tools like Bitchat enable Bluetooth-based messaging to relay Bitcoin transactions between nearby devices, though eventual internet connectivity is still required for on-chain confirmation. Other developing tools like Darkwire and Machankura use radio networks or basic mobile telecoms for offline Bitcoin transactions. While these technologies provide partial workarounds and financial lifelines, they cannot fully replace internet access, as a connected node is ultimately needed to finalize blockchain transactions. The situation underscores crypto's censorship-resistant value during turmoil, though it remains a complete substitute for traditional internet-dependent systems.

The Iranian government blocked all access to the internet across the country yesterday in response to the spread of protests throughout Iran, reigniting discussion over whether cryptocurrency is still possible amidst extreme levels of connectivity restriction. The move comes as a result of Iran’s deteriorating economy and its Iranian rial hitting all-time lows in value relative to the United States dollar.

Roughly seven million Iranians out of a population of 92 million use cryptocurrency, according to Statista. Blockchain analytics firm TRM Labs tracked approximately $3.7 billion in crypto flows linked to Iran between January and July 2025. That activity now faces severe friction as citizens lose access to traditional internet services.

Some global crypto advocates have already weighed in. Hunter Horsley, the CEO of Bitwise, proposed that Bitcoin purchasing can help Iranians conserve their wealth even in times of currency flux. With the absence of internet access, transacting cryptocurrencies becomes even more complicated.

How crypto works without the internet

Transacting using cryptocurrencies requires the internet to broadcast the information to the blockchain network. Despite that, there exist other technologies that can help fill the gap during shutdowns.

It might include satellite internet services provided by Starlink, a company headed by Elon Musk, which provides two-way, high-speed internet through satellite dishes that connect directly to satellite relays orbiting Earth. Starlink is known to have reinstated internet services for its customers during a previous blackout in June 2025, and now unpublished sources indicate Musk might personally have agreed to provide a similar service again.

Another solution comes from Blockstream, which operates a satellite network that broadcasts Bitcoin blockchain data worldwide. Users can receive transaction and block data without the internet. While this method supports one-way communication, users still need some form of outbound connectivity to submit transactions.

Mesh networks and peer-to-peer tools

Decentralized communication tools also offer workarounds. Bitchat, created by Jack Dorsey, uses Bluetooth mesh networking to pass messages directly between nearby phones. Clever users can encode Bitcoin transaction data into messages and relay them across devices.

Eventually, at least one device must connect to the internet to confirm transactions on-chain. Even so, Bitchat has seen rapid adoption. Analytics platform Chromestats shows over 1.4 million downloads since launch, including nearly 20,000 downloads in the last day and more than 460,000 in the past week.

Tools are still under development

There are a few offline crypto tools that continue to be actively developed. Darkwire was launched by the pseudonym “Cyb3r17” in May 2025 and relies on a range of radios to create a mesh of communication for the purpose of Bitcoin transaction information to be transmitted without the need for internet access. It is currently undergoing a massive rewrite on GitHub.

There is also another system that dates back to 2022. Machankura, developed by South African developer Kgothatso Ngako, enables users to transmit and receive payments in Bitcoin using simple mobile telecommunication networks as opposed to the internet. This was covered in a report published in Forbes in March 2023.

A partial solution, not a full escape

Even though these technologies make internet centralization less necessary, not one makes internet centralization irrelevant. Eventually, in any transaction, there must be a connected node for the transaction to finalize on the blockchain. Nevertheless, the Iranian blackout illustrates just how important the censorship-resistance aspect of crypto remains during times of turmoil.

As the protests are still ongoing and the availability of internet connectivity is still not certain, the use of crypto technologies may not be able to replace the internet at all, but at least provide a financial lifeline in situations when the traditional system does not work.

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TagsBitcoinBlockchainCrypto AdoptionIranIran Government

Related Questions

QWhat was the Iranian government's response to the spread of protests, and how did it impact cryptocurrency activity?

AThe Iranian government blocked all internet access across the country. This shutdown created severe friction for cryptocurrency activity, as transacting cryptocurrencies requires internet access to broadcast information to the blockchain network.

QAccording to the article, what are two technologies that can help facilitate cryptocurrency transactions during an internet shutdown?

ATwo technologies mentioned are satellite internet services like Starlink, which provides two-way, high-speed internet via satellites, and Blockstream's satellite network, which broadcasts Bitcoin blockchain data worldwide for one-way reception without internet.

QWhat is Bitchat and how does it function in relation to Bitcoin transactions?

ABitchat is a decentralized communication tool created by Jack Dorsey that uses Bluetooth mesh networking to pass messages directly between nearby phones. Users can encode Bitcoin transaction data into these messages and relay them across devices, though a device eventually needs internet to confirm the transactions on-chain.

QWhat limitation do all the mentioned offline crypto tools share, despite their functionality?

AAll the tools still require at least one device to eventually connect to the internet to finalize and confirm transactions on the blockchain. They are partial solutions that reduce but do not eliminate the need for internet connectivity.

QWhat does the article conclude about the role of cryptocurrency technologies during the Iranian internet blackout?

AThe article concludes that while these technologies cannot fully replace the internet, they can provide a crucial financial lifeline and demonstrate the importance of crypto's censorship-resistance during times of turmoil when the traditional financial system is disrupted.

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