Amid faltering negotiations to reopen the Strait of Hormuz, Iran has increasingly turned to Bitcoin (Bitcoin) to evade US sanctions.
On May 18, Iran unveiled a Bitcoin-backed insurance service called “Hormuz is safe“, according to documents of the country’s Ministry of Economy and Finance. The “Hormuz Vault” is intended for Iranian shipping companies and cargo owners who are looking for fast and verifiable digital insurance.
Indeed, the head of the Iranian Parliamentary Committee for National Security, Ebrahim Azizi, hinted at a possible mechanism for managing traffic in the Strait of Hormuz. Earlier on Monday, the Persian Gulf Strait Authority (PGSA) announced. unveil As the legal entity and representative authority of the Islamic Republic of Iran to manage traffic and transit through the Strait of Hormuz.
Azizi added: “In this process, only commercial ships and parties cooperating with Iran will benefit from it. The necessary fees will be collected for the specialized services provided under this mechanism.” male.
Iran is leaning towards Bitcoin to evade US sanctions
The move to adopt bitcoin as a means of payment in the Strait of Hormuz follows Iran’s freeze last month. USDT. Notably, Tether, along with the Office of Foreign Assets Control (OFAC) and law enforcement agencies, froze more than $344 million in USDT, which was tied to the Central Bank of Iran, based on Data from Arkham Intelligence.
The ability of shipping entities to pay duties in Bitcoin to Iran undermines US sanctions. Furthermore, the Bitcoin network is permissionless, globally accepted due to its significant liquidity, and free from the control of any global central bank.
As such, Iran could become a major hub for Bitcoin, given that the Strait of Hormuz accounts for about 20% of global oil consumption. With each ship estimated to pay about $2 million to the Iranian government for passage rights, demand for Bitcoin through the Hormuz Holding could spur a supply shock amid growing global adoption.
