Iran has launched a “Hormuz Safe” initiative using Bitcoin (BTC) to insure ships transiting the Strait of Hormuz, a move its government estimates could generate $10 million in revenue. This development occurs against the backdrop of persistent tensions with the United States. Analysis suggests the adoption reflects a broader effort by sanctioned nations like Iran to circumvent the U.S. dollar-based financial system, though the volatility of Bitcoin presents potential long-term challenges compared to the dollar’s established liquidity.
Iran has revealed its “Hormuz Safe” initiative that aims to use Bitcoin (BTC) to ensure safe passage of ships through the Strait of Hormuz. According to the Iranian government, the move could generate $10 million in revenue.
The move comes amid the U.S.-Iran conflict seeing no end in sight. Iran’s desire to use Bitcoin is not surprising, given the country was ousted from the U.S. dollar-based system.
CoinShares data shows Iranian BTC adoption has significantly surged, with about 14 million Iranians using it. Annual transaction volumes have risen around 12% year-on-year and represent about 2.2% of Iran’s GDP.
Western-sanctioned countries, including Russia and North Korea, have pivoted to cryptocurrencies like Bitcoin to settle international trade. According to analyst Chris Bendiksen, sanctioned countries may be moving to Bitcoin (BTC) to bypass the global US dollar-based trade settlements system.
However, Bitcoin is an extremely volatile currency where prices often see violent swings. The U.S. dollar, by contrast, is a well-oiled machinery with the highest liquidity in the world.
