Iran’s government is demanding that companies and government pay tolls for safe passage through the Strait of Hormuz using cryptocurrencies such as Bitcoin (BTC).
The crypto payments from cargo ships passing through the Strait of Hormuz are aimed at helping Iran avoid economic sanctions imposed on it by the U.S. and other countries.
Iran's regime has said that Bitcoin is the preferred payment method as it seeks to charge ships for passage through the Strait of Hormuz, an international waterway.
However, some media reports say that stablecoins are also being accepted to allow oil tankers to traverse the waterway that connects the Middle East and Asia.
Iran is reportedly charging a fee of $1 U.S. per barrel of crude oil, with the largest shipping tankers carrying up to two million barrels.
The government in Iran has long used cryptocurrencies to help it evade sanctions.
Some reports say that Iran moved more than $175 million U.S. between cryptocurrency addresses over the past year.
Iran has been under economic sanctions since 1979, including by almost every bank in the world, making it difficult to access U.S. dollar-pegged assets and trade internationally.
Analysts say that Iran’s crypto payments won’t help criticisms that digital assets are widely used for illegal and criminal behaviour, and to help rogue government’s avoid financial penalties.
Bitcoin is currently trading at $71,250 U.S.
