Iran Pursues Bitcoin-Based Marine Insurance for Strait of Hormuz Shipping
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Iran is pursuing a Bitcoin-based marine insurance service for vessels passing through the Strait of Hormuz, a move seen as an attempt to secure a new source of foreign-currency revenue amid tensions with the US and Israel.
Bloomberg reported on May 18 that Iran's semi-official Fars News Agency, citing documents from the Ministry of Economic Affairs and Finance, said the government had launched a Bitcoin-based insurance service called Hormuz Safe.
The service offers cryptographically verifiable insurance certificates for ships and cargo moving through the Strait of Hormuz and the Persian Gulf. Insurance premiums are paid in Bitcoin.
The Iranian government says the service could generate more than $10 billion in revenue over the long term. It did not disclose details on how the program would operate or how the revenue would be generated.
Iran is effectively pushing to tighten control over traffic through the Strait of Hormuz following US and Israeli airstrikes. The Islamic Revolutionary Guard Corps, or IRGC, and the government are also reviewing plans to impose transit charges and other fees.
Bloomberg said Iran has expanded its use of virtual assets, including Bitcoin and Tether's USDT, to bypass US sanctions. As a sanctioned country, Iran has increasingly turned to crypto-based payment infrastructure instead of traditional financial networks.
Still, some in the market question whether Bitcoin's volatility would allow it to function reliably as a payment method for international marine insurance. Foreign shipping companies' participation may also be limited by concerns about violating US sanctions on Iran.
