The Iranian regime's move to accept cryptocurrency payments from cargo ships traversing the Strait of Hormuz is consistent with its existing efforts to circumvent sanctions through trade networks. This development, confirmed by a spokesperson for Iran's Oil, Gas and Petrochemical Products Exporters' Union, involves the use of bitcoin as a payment method, with previous reports also mentioning the acceptance of stablecoins for oil tankers to pass unharmed. The fee is set at $1 per barrel of oil, with the largest tankers carrying up to two million barrels.
According to Andrew Fierman, head of national security intelligence at Chainalysis, the Iranian regime has been leveraging cryptocurrency to facilitate cross-border trade, especially oil sales, over the past few years. This includes a complex network using crypto wallets, with sanctioned activity over the last year and a half showing significant growth. Notably, the IRGC-affiliated networks have been using crypto at a commercial scale, with Fierman highlighting the complexity and establishment of this system. The use of stablecoins as a payment mechanism for cross-border trade is seen as a strategic move, allowing the Iranian regime to trade globally without relying on the traditional banking system.
Experts, including Tom Keatinge and Lee Reiners, agree that USD-backed stablecoins have become an essential payment mechanism for the Iranian regime, enabling it to evade sanctions and western banking controls.