Iran has announced a Bitcoin toll system for oil tankers moving through the Strait of Hormuz after a two-week ceasefire with the United States. The plan aims to manage transit while maintaining control over one of the world’s key oil routes.
A report by the Financial Times said Iran will charge $1 per barrel of oil carried by each vessel. The fee must be paid in Bitcoin. This Bitcoin toll applies to all tankers seeking passage through the strait.
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The ship operators must first send an email to the Iranian authorities regarding their cargo. Then they must wait for their authorization before accessing the passage. Afterward, they will have just a few seconds to make the Bitcoin toll payment to the Iranian wallet.
An Iranian official told the Financial Times that the system ensures that there would be no tracing or seizing of the toll under the sanctions. According to the official, the payment is not easily traceable.
The government of Iran claims that its system is aimed at keeping an eye on the cargo when there is a ceasefire agreement. In addition, the system is intended to ensure that arms are not smuggled using the strait.
Iran gained control over the strait after US and Israeli attacks towards the end of February. Every year, nearly one-third of the world’s oil passes through this strait. The conflict had already increased the cost of oil over the last few weeks.
However, the shipping has decreased significantly after the escalation of tensions. Several hundred vessels reportedly wait around the region currently. Approximately, before the crisis, about 100-120 ships went through every day, and now this number has considerably dropped.
Moreover, Iran has started giving warnings to the ships in the Persian Gulf. They were sent via radio broadcasts in English and warned that unauthorized movements could make them targets. Such warnings certainly increased the caution of shipping companies.
It is important that the other regional exporters such as Saudi Arabia, the UAE, and Qatar will likely protest against the possible prolonged rule by Iran. The Strait of Hormuz is a common route for oil-producing countries. Therefore, the new regime can create additional problems.
However, recently Donald Trump has stated that the US and Iran can develop a shared tolling regime. According to him, such development seems positive in an interview on ABC News. No words on the Bitcoin tool have been mentioned from the Iranian officials.
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