Energy Subsidies Iran: How Crypto Fits Into the Country's Power and Economic Crisis

When you think of energy subsidies Iran, government payments that keep electricity prices artificially low for citizens. These subsidies are meant to help households, but they’ve crippled Iran’s power infrastructure, making it one of the most inefficient energy systems in the world. With electricity costing less than a penny per kWh in some areas, the state loses billions yearly—yet millions still face blackouts. This paradox is why crypto mining exploded there: cheap power turned Iran into a global hotspot for Bitcoin operations, even as the government struggled to keep lights on in homes.

But it’s not just about power—it’s about survival. The FATF blacklist, a global financial isolation list that cuts off Iran from banks and payment systems. Also known as Financial Action Task Force blacklist, it forced Iranians to turn to cryptocurrency just to send money, buy medicine, or pay for essentials. Bitcoin and peer-to-peer networks became the only reliable way to move value across borders. Meanwhile, the crypto sanctions, U.S. and international restrictions targeting crypto transactions linked to Iranian entities. These sanctions don’t stop crypto use—they just make it riskier, pushing activity into unregulated exchanges and shadow networks. Even as the government tried to ban mining in 2022, it reversed course in 2023, realizing crypto was the only thing keeping the economy from collapsing.

It’s not just Iran. When Pakistan allocated 2,000 MW of electricity to crypto mining, it showed how countries with energy surpluses or mismanaged grids are using blockchain to turn waste into value. But Iran’s case is unique: it’s not a policy choice—it’s a necessity. People mine crypto not to get rich, but to feed their families. And when the grid fails, so do the mining rigs. That’s why the energy subsidies Iran issue isn’t about economics—it’s about human resilience. Below, you’ll find real stories and data on how sanctions, power shortages, and crypto are reshaping daily life in Iran—and what it means for anyone using digital assets under pressure.