Iran approved a monetary overhaul Sunday to remove four zeros from the nation’s currency following years of high inflation.
Iranian Rial Undergoes Redenomination
The Iranian Parliament sanctioned a monetary reform that will phase out four zeros from the country’s national currency, the Iranian Rial, over the next few years, according to a Reuters report. Under the plan, 10,000 rials will be replaced by one new rial.
The bill has been under consideration for several years. Inflation rates exceeding 35% annually have significantly devalued Iran’s currency, causing the exchange rate to plummet sharply against the dollar on the free market, Reuters said, citing data from currency tracker bonbast.com.
While redenomination creates a new currency with a smaller monetary scale, the purchasing power of the currency remains unchanged.
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A Tale Of Soaring Inflation
Several countries facing high inflation have previously chosen to eliminate zeros from their national currencies, with Venezuela doing so in 2021, the second time in three years, Reuters reported earlier. Similarly, Turkey removed six zeros from the Turkish Lira in 2005.
Is Bitcoin The Answer?
Some vocal Bitcoin (CRYPTO: BTC) advocates project the apex cryptocurrency as an ideal choice in countries experiencing high inflation due to its perceived narrative as an inflation-resistant store of value.
Galaxy Digital CEO Mike Novogratz advocated for Bitcoin as a potential solution to Nigeria's economic woes when the country’s inflation hit record levels last year.
Similarly, Bitcoin purist Max Keiser said in 2019 that Turks could turn to Bitcoin as a hedge to escape the collapsing Lira.
An analysis of the past decade shows Bitcoin surged in value against the U.S. dollar, while the national currencies of Iran, Venezuela and Turkey have sharply depreciated.
| Currency | Price in USD (Recorded 10 Years Ago) | Price (Recorded at 2:30 a.m. ET) | Gains +/- |
| Bitcoin | $246.06 | $124,101 | +50335.3% |
| Iranian Rial | $0.0000333812 | $0.0000237969 | -28.70% |
| Turkish Lira | $0.3430 | $0.0240 | -93.01% |
| Venezuelan bolívar | $0.402495 | $0.00540035 | -98.65% |
Gold: The Real Safe Haven?
That said, 2025 has been far from ideal for Bitcoin, falling short of expectations as a reliable safe-haven asset or effective hedge against inflation.
China and India’s central banks have added gold to their reserves. Other emerging market central banks have also been buyers of gold, not Bitcoin.
Moreover, President Donald Trump’s sweeping tariff announcement in April sent Bitcoin tumbling below $75,000, while the yellow metal rallied during this period.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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