The Iranian government's decision to accept cryptocurrency payments from cargo ships passing through the Strait of Hormuz is a logical extension of its existing sanctions-evading trade networks, according to blockchain crime experts. This development has been confirmed by a spokesperson for Iran's Oil, Gas and Petrochemical Products Exporters' Union, who stated that bitcoin is being accepted as a payment method, with a fee of $1 per barrel of oil. The use of cryptocurrency for shipping toll payments appears to be a bold move, but it aligns with the Iranian regime's growing reliance on cryptocurrency for cross-border trade, particularly for oil sales, as reported by blockchain analytics firm Chainalysis.
Andrew Fierman, head of national security intelligence at Chainalysis, noted that it is unsurprising to see this type of trade happening via cryptocurrency, given the regime's history of using crypto wallets for sanctioned activities. A review of sanctioned activity over the past year and a half reveals a complex network utilizing crypto wallets, including a U.S.-sanctioned IRGC-affiliated financier who facilitated Iranian oil sales to Yemen involving cryptocurrency addresses, resulting in over $178 million in transfers. The IRGC's adoption of cryptocurrency, particularly stablecoins, as a payment mechanism for cross-border trade is a more complex and established system than previously thought, according to Fierman.
The use of stablecoins creates a mechanism for the Iranian regime to trade globally without relying on the traditional banking system, which is challenging for them due to comprehensive sanctions. Tom Keatinge, founding director of the Centre for Finance and Security, agreed that USD-backed stablecoins have become an essential payment mechanism for the Iranian regime, allowing them to avoid sanctions and western banking controls. Lee Reiners, a lecturing fellow at Duke University's Financial Economics Center, suggested that Iran could further its sanctions-evading goals by demanding payment in specific stablecoins, potentially creating a financial incentive for the U.S. to lift sanctions.