Amid stalled talks to reopen the Strait of Hormuz, Iran has turned to Bitcoin (BTC) to escape United States sanctions.
On May 18, Iran unveiled a Bitcoin-backed insurance service called ‘.Hormuz Safe‘, according to documents from the Ministry of Economy and Finance in this country. The Hormuz Safe is designed for Iranian shipping companies and cargo owners who want fast, reliable digital insurance.
The head of Iran’s national security committee, Ebrahim Azizi, has previously spoken about a route that could drive traffic through the Strait of Hormuz. Earlier on Monday, the Persian Gulf Strait Authority (PGSA) was uncovered as a legal entity and a representative of the Islamic Republic of Iran in managing the passage through the Strait of Hormuz.
“By doing this, only commercial ships and parties that cooperate with Iran will benefit from them. Appropriate funds will be collected for special services provided under this mechanism,” Azizi. he said.
Iran is leaning on Bitcoin to avoid US sanctions
The move to adopt Bitcoin as a payment method in the Strait of Hormuz follows last month’s freeze on Iran. USDT. In particular, Tether, together with the Office of Foreign Assets Control (OFAC) and law enforcement agencies, suspended $344 million in USDT, which was linked to the central bank of Iran, based on data from Arkham Intelligence.
The ability of shipping companies to pay money in Bitcoin to Iran reduces the sanctions of the United States. Additionally, the Bitcoin network is permissionless, globally accepted for its deep financial system, and not regulated by a central international bank.
In the same way, Iran can become the capital of Bitcoin, since the Strait of Hormuz takes about 20% of the world’s oil. With each ship estimated to pay about $2 million to the Iranian government for the right of passage, the demand for BTC through Hormuz Save could cause a stir among the establishment of the whole world.
