The Iranian regime's decision to accept cryptocurrency payments from cargo ships is a strategic move that aligns with its existing trade networks, which have been using crypto to facilitate international trade, particularly oil sales, despite US sanctions. A spokesperson for Iran's Oil, Gas and Petrochemical Products Exporters' Union confirmed that bitcoin is being accepted as a payment method, with a fee of $1 per barrel of oil. This development is seen as an audacious move, but experts say it's a natural progression of Iran's increasing use of cryptocurrency over the past few years. According to Andrew Fierman, head of national security intelligence at Chainalysis, the Iranian regime has been using cryptocurrency to facilitate cross-border commercial trade, especially with Iranian oil sales.
The use of crypto wallets has enabled the regime to bypass traditional banking systems and sanctions. A snapshot of sanctioned activity over the past year and a half reveals a complex network using crypto wallets, with transactions totaling over $178 million in a single year. The Houthis, an Iran-backed armed group, have also been using cryptocurrency to purchase weapons and commodities from Russia. The IRGC's adoption of cryptocurrency, specifically stablecoins, as a payment mechanism for cross-border trade, is a strategic move that allows them to trade globally without relying on traditional banking systems.
Experts agree that the use of USD-backed stablecoins has become an increasingly important payment mechanism for the Iranian regime, enabling them to evade sanctions and western banking controls.