Abstarct: This study aimed to investigate the use of cryptocurrencies and Islamic financial instruments in hedging foreign exchange risk of Iranian importers and exporters. The statistical population of the study includes all importers and exporters active in Iranian foreign trade who have faced exchange rate fluctuations in recent years and have probably used modern financial instruments, including cryptocurrencies and Islamic financial instruments, to hedge foreign exchange risk. Due to the large size of the population and access restrictions, sampling was carried out using a non-random and purposeful method, and the selection criteria included experience in foreign exchange risk management and familiarity with modern financial instruments. The sample size was determined to be 385 people to enable the implementation of PLS-SEM analysis with appropriate statistical power and sufficient accuracy. The research model was estimated using structural equation modeling baxsed on partial least squares baxsed on economic data for a specific period of time The results showed that the effect of Islamic financial instruments on the currency risk index is positive but very weak and statistically insignificant. On the other hand, it was found that the use of cryptocurrencies has a positive, strong and significant effect on the currency risk index, which indicates the prominent role of these new digital instruments in increasing currency fluctuations and risks. The examination of the goodness-of-fit indices showed that the model has the necessary coherence and adequacy for analyzing structural relationships. The results of the study, baxsed on a comparative analysis with previous literature, provide a realistic picture of the difference in the effects of Islamic financial instruments and cryptocurrencies on currency risk and can be a basis for financial policymaking, the design of hedging instruments and future research in this area.