On one side is the official promotion of the national digital currency strategy, and on the other side is a massive grassroots crypto ecosystem—Iran's story is complex and very real.

Malignant inflation combined with international sanctions leaves ordinary people with few options. Bitcoin, USDT, and similar assets have gradually evolved into tools for preserving value, alternatives for cross-border payments, and even income-generating channels. The market operates from the bottom up in this way, presenting a unique form: retail mining dominates, stablecoins have become a necessity of life, and domestic exchanges adapt flexibly to policy changes.

**The Wild Growth of Underground Mining**

Iran was once a major hub for retail mining globally. In 2018, the government even encouraged this activity by offering cheap electricity, attracting a large number of miners. However, the attitude quickly shifted, requiring miners to surrender their Bitcoin and increasing electricity prices. Legal mining lost its prospects, and many miners turned to underground operations.

How large is the current scale? Illegal mining reaches 2 gigawatts of capacity, while legal operations are only 5 megawatts—look at this gap, 400 times. These "guerrilla" farms are hidden in residential buildings, warehouses, and small shops, using old Antminer S9 machines, and employing methods like wiring before the electric meter to evade inspection. The mined Bitcoin is quickly exchanged for USDT, stored, or spent; for many families, this is their lifeline.

**Stablecoins as an Invisible Hard Currency**

The Iranian rial has depreciated over 95% in the past decade. It’s also difficult to obtain US dollars in cash. Against this backdrop, USDT has supported half of the grassroots financial life.

People use USDT for savings, cross-border transfers, and large purchases. It is more stable than the local currency and more convenient than cash dollars, gradually becoming the core of grassroots asset allocation. This is not an investment choice; it is an inevitable way of survival.