According to multiple sources, Iran has started to demand cryptocurrency payments, including Bitcoin, for the passage of ships through the Strait of Hormuz.
Iran is reportedly charging a toll of $1 per barrel of oil, which means that large supertankers could be charged up to $2 million dollars to pass through.
The Hormuz Strait, which roughly 20% of the world's oil supply passes through on a daily basis, was closed by Iran after Israel and the U.S. launched their attack on February 28th.
Bitcoin
If Iran demanded tolls in dollars or euros via the international banking system, those transactions would almost certainly be blocked or censored by U.S. financial authorities.
Bitcoin is the first decentralized, neutral payment network, which is open to anyone. Unlike the dollar, there is no central authority that can arbitrarily block Bitcoin payments.
With cryptocurrencies like Bitcoin, individuals, small businesses, and even nation states can trustlessly receive any amount of money, anytime, from anyone, anywhere in the world.
Stablecoins
There are also reports that Iran is accepting stablecoin payments such as USDT or USDC. If that is indeed the case, Iran would run the risk of having their funds frozen by either Tether or Circle, both of which have the authority to suspend wallet addresses.
By the way, although stablecoins such as USDT and USDC can be frozen by the issuing authority, decentralized alternatives such as DAI and HBD (Hive-backed dollar) are less susceptible to interference.
Yuan
Iran is also reportedly accepting payments in Chinese yuan via CIPS (China’s international payment network), completely side-stepping the US-controlled Swift payment system.
This serves as a reminder of how Russia and China have been working together, along with other BRICS nations, to build an alternative to the US dollar-based payment system.
Until next time...
Many countries have been seeking to reduce their dependence on the US dollar, especially since broad financial sanctions were imposed on Russia during the Ukraine conflict.
In addition to unsustainable debts, this latest war with Iran may cause de-dollarization to accelerate as nations, businesses and individuals drop the dollar in favor of either gold-backed alternatives or cryptocurrencies.
If you learned something new from this article, be sure to check out my other posts on crypto and finance here on the Hive blockchain. You can also follow me on X or InLeo for more frequent updates.
Sources
- Iran Wants Bitcoin Payments From Oil Ships Seeking Hormuz Passage