Iran Internet Shutdown Raises Question: Can Crypto Still Function?

• Iran’s internet shutdown limits the use of cryptocurrency, but it is not impossible.
• Satellite, Radio, or Mesh Network tools are capable of transmitting Bitcoin information without connectivity.
• Crypto serves as a financial substitute to a certain extent in cases involving currency collapse and government regulation.

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is known to have reinstated internet services for its customers during a previous blackout in June 2025, and now unpublished sources indicate Musk might personally have agreed to provide a similar service again.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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