Iran has announced it is launching a Bitcoin-backed insurance service for shipping companies wanting to transit the Strait of Hormuz. The state-backed platform, called Hormuz Safe, aims to use cryptocurrency settlements to bypass Western financial systems and monetize Iran’s control over one of the world’s most critical shipping lanes.
According to reporting from Fars news agency, Hormuz Safe is designed to issue maritime insurance policies and liability certificates for ships using the key shipping route, providing instant coverage upon payment confirmation, with policies digitally verified and settled in Bitcoin. It could generate more than $10 billion in revenue for Tehran, according to official estimates.
The launch comes less than a month after Iran began demanding Bitcoin for oil ships looking to transport through the Strait of Hormuz. The oil pathway has experienced significant disruption since the US and Israeli airstrikes against Iran began on Feb. 28, prompting Tehran and the Islamic Revolutionary Guard Corps to tighten control over the Strait. Due to several tightening restrictions and sanctions, Iran has begun favoring cryptocurrencies, including BTC and stablecoins, over recent years for global trade. Most recently, the country has told ship operators that passage through the Strait of Hormuz will require digital currency payments, including Bitcoin, with a proposed toll of roughly $1 per barrel for crude carriers, according to the Financial Times.
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Iran’s new ordeals towards embracing Bitcoin at such a critical time signal renewed interest in the asset. The fact that Bitcoin was trusted at a time when geopolitical unrest was at its peak showcases how the asset is now slowly evolving into a dignified financial instrument worthy of trust and faith. Despite that, BTC prices fell over the weekend after tensions re-intensified between the US and Iran, sending the king coin south of $80,000. At press time, BTC trades at $76,000.