Iran Accepts Bitcoin for Oil Ship Tolls at Strait of Hormuz

Iran's government naming Bitcoin (BTC) as a payment method for oil ships crossing the Strait of Hormuz highlights its role as a neutral, strategic asset, according to Sam Lyman, head of research at digital asset advocacy organization Bitcoin Policy Institute (BPI). The government selected BTC as one of the payment methods for the tolls because of its censorship-resistant qualities, Lyman told Cointelegraph. He said: "This is one of the most significant situations where Bitcoin is very clearly a strategic asset. The reason why Iran wants to use Bitcoin for these transactions is that no one can freeze Bitcoin. No one can shut down the Bitcoin network." Iran is accepting oil tolls in Chinese yuan, US dollar-pegged stablecoins and BTC. However, there is "no onchain evidence" of a BTC toll payment so far, Lyman said, adding that the "majority" of Iran's crypto transactions are denominated in US dollar stablecoins. The announcement from the Iranian government highlights why US lawmakers should recognize and treat Bitcoin as a strategic asset, rather than taking a hostile regulatory stance toward it or dismissing digital assets altogether, Lyman told Cointelegraph.

Related: Bitcoin community weighs in on reports of Iran's crypto toll for oil ships

Stablecoin confiscation is just a cost of doing business

"Iran has had a digital asset strategy for several years, going back to about 2018, and the majority of transactions that take place there are with USDt," (USDT), Lyman said. USDt is a dollar-pegged stablecoin issued by the company Tether. The Iranian government is using stablecoins, despite the ability of stablecoin issuers to freeze wallets, he said. "I think they're rolling the dice," Lyman told Cointelegraph. He said that the Iranian government has been able to shift about $3 billion in cryptocurrencies since 2022, with the "majority" of that value denominated in stablecoins. However, the US Treasury Department was only able to freeze about $600 million in assets, according to Lyman. "They were able to move $3 billion, and only have $600 million frozen. They were still able to move about $2.4 billion. So, I think that's why stablecoins are still a go-to for the regime," he said.