Cryptocurrencies in Times of Conflict: A Refuge Against a Potential Third World War?

Analysis of cryptocurrencies as a wealth refuge during the Israel-Iran conflict. Volatility data, adoption in crisis, and expert perspectives reveal their real impact

In June 2025, the world held its breath as US B-2 planes dropped 13,600 kg "bunker buster" bombs on Iranian nuclear facilities in Fordow, Natanz, and Isfahan. This attack, ordered by President Donald Trump, marked the formal entry of the US into the conflict between Israel and Iran, which had already seen 12 days of ballistic exchanges and airspace closures in the Gulf.

Amid this escalation, a financial phenomenon drew attention: Bitcoin recorded a 2% rise in 24 hours, while traditional stocks and bonds fell. This movement was not isolated; it reflects a trend where cryptocurrencies emerge as digital refuges in geopolitical crises, challenging physical gold in its historical role.

Decentralization as a shield against war

The essence of Bitcoin and other cryptocurrencies lies in their decentralized architecture. As Rodrigo Durán Guzmán, Director of Communications at CryptoMKT, states, "when traditional financial systems are affected by conflicts [...] cryptocurrencies allow people to retain control over their resources, without depending on intermediaries."

This has been evident both in the Middle East, with the abrupt increase in transfers of stablecoins like USDT and USDC during attacks, allowing citizens to protect capital without conversions to local currencies; and in Latin America, in countries like Venezuela and Argentina with hyper-devalued local currencies, where crypto functions as an alternative to preserve savings and receive remittances.

“In Latin America we have already seen how, in the face of local crises, many people turn to cryptocurrencies to protect their savings, send remittances, or simply maintain their purchasing power. This phenomenon intensifies in global conflict scenarios, where fear of value loss or financial blockade drives the search for alternative assets,” recounts Durán Guzmán.

On the other hand, the Russia-Ukraine conflict (2022) was a critical precedent: Ukraine received $50 million in crypto donations to buy weapons and supplies, using digital wallets to circumvent destroyed banks, while Russia explored cryptocurrencies to evade sanctions, albeit with limited success due to blockchain tracking and restrictions on regulated exchanges.

Stablecoins: the silent tools of conflict

While Bitcoin captures headlines, stablecoins have proven more practically effective. USDT and USDC allow freezing value in digital dollars without exposure to the volatility of unbacked cryptos.

In Lebanon and Gaza, for example, citizens have been reported using wallets like Trust Wallet or MetaMask to transfer value when banks collapse or borders close.

“At CryptoMKT we work so that more people can access the crypto world safely, simply, and in a regulated manner. Especially in times of uncertainty, having a reliable and transparent shelter option can make a real difference in the lives of millions. The possibility of accessing a global asset, without political restrictions or borders, represents today a concrete form of financial freedom,” explains the CryptoMKT Communications Director.

How can war change cryptocurrencies?

The Israel-Iran war could catalyze three transformations for these currencies:

• Institutionalization of Stablecoins: Central banks and fintechs could issue sovereign stablecoins for cross-border transactions during armed conflict.

• Decentralized Infrastructure: Startups in Tel Aviv are already migrating services to networks like Ethereum to avoid financial blockades.

• New Hybrid Havens: Tokens backed by physical gold (like PAXG) gain ground by combining the metal's stability with digital liquidity.

Financial freedom in the era of chaos

Cryptocurrencies are not the "new gold": their volatility and correlation with traditional markets invalidate them as perfect shelters. However, they offer something more valuable in wars: autonomy. As Durán Guzmán summarizes:

"The possibility of accessing a global asset, without political restrictions or borders, represents today a concrete form of financial freedom."

In Ukraine, Iran, or Venezuela, millions use crypto not to get rich, but to preserve the basics: savings, remittances, and access to essential goods. This pragmatic utility, more than any financial theory, redefines their role in the approaching geopolitical storm.