The Iranian government's adoption of cryptocurrency payments for ships traversing the Strait of Hormuz is a calculated move that aligns with its existing sanctions-circumventing trade networks. This development, confirmed by a spokesperson for Iran's Oil, Gas and Petrochemical Products Exporters' Union, involves accepting bitcoin as a payment method, with a fee of $1 per barrel of oil.
The Islamic Revolutionary Guard Corps (IRGC) has been increasingly utilizing cryptocurrency to facilitate cross-border trade, particularly for Iranian oil sales, as per Chainalysis data. The use of cryptocurrency for toll payments is seen as an audacious move, yet it fits into the broader context of Iran's growing and complex crypto-based trade network.
Experts like Andrew Fierman, head of national security intelligence at Chainalysis, note that this development is unsurprising, given the regime's history of leveraging cryptocurrency for sanctions-evading activities. The IRGC-affiliated networks have been using crypto at a commercial scale, with a network of wallets facilitating cross-border trade, making it easier to accept payments in crypto rather than relying on traditional banking systems. The adoption of stablecoins, in particular, has been significant, as it allows the regime to access US dollar-pegged assets, which are essential for international trade.
The inability to access US dollar-pegged assets due to comprehensive sanctions has made it challenging for Iran to trade globally, but the use of stablecoins has created an alternative mechanism. Experts like Tom Keatinge and Lee Reiners agree that USD-backed stablecoins have become a crucial payment mechanism for the Iranian regime, allowing it to evade sanctions and Western banking controls.