Iran Considers Bitcoin for Strait of Hormuz Oil Tanker Tolls
Iran is considering Bitcoin payments for oil tanker tolls through the Strait of Hormuz, according to a Financial Times report published Wednesday. The approach highlights why sanctioned states prefer censorship-resistant crypto over freezable stablecoins.
Key Takeaway
Iran's Bitcoin toll plan highlights why sanctioned states prefer censorship-resistant crypto over freezable stablecoins.
A spokesperson from Iran's Oil, Gas and Petrochemical Products Exporters' Union told the Financial Times that ships would have just a few seconds to complete payment in BTC.
Galaxy Head of Firmwide Research Alex Thorn is monitoring onchain activity for signs of these toll payments hitting the blockchain. He said Iranian authorities would likely provide a QR code or alphanumeric Bitcoin address to ships upon approval of their requests to pass through the strait. The Strait of Hormuz handles 20% of global oil supply, making it one of the world's most critical shipping lanes.
BTC advocate Justin Bechler explained why Iran would pick Bitcoin over stablecoins. USDT and USDC include built-in blacklist functions at the smart contract level, he said. When an address is flagged, the issuer can freeze the tokens, rendering them completely illiquid. Bitcoin has no issuer, no compliance officer to pressure, and no freeze function.
Thorn noted conflicting reports suggest tolls might be payable in stablecoins or Chinese yuan instead. The Lightning Network could handle these payments in seconds rather than the 10 minutes needed for Bitcoin block confirmations, with the largest known Lightning Network transaction to date standing at ₱59.94 million ($1 million).
This article was written based on reporting from Cointelegraph.
