Iran Plans to Accept Bitcoin for Oil Tankers in Hormuz

Iranian officials mentioned that using Bitcoin for tolls would make it impossible to trace or seize the payments because of sanctions. They're looking to make oil tankers pay transit fees in Bitcoin when they pass through the Strait of Hormuz. The idea is that this will help dodge sanctions since it makes tracking and confiscation of funds much tougher. This comes after a ceasefire and could stir up some issues with other oil-exporting nations regarding control over the Strait. How do you guys think this could impact the crypto market?

It is very good to know that the governments are now knowing what bitcoin is. Bitcoin is just the answer to bypass the Western sanctions. They should know that USDT, USDC and most of the stable coins are completely centralized and can be seized. Definitely, positively. But I am referring to bitcoin and not altcoins. But did you also read the source to confirm? You have to pay before reading it.

As subjected by the Iranian officials, this development enhance custodian of the local governments to control secure the funds acquired in the transit revenues when payments is made through the Decentralized finance ( Bitcoin) where it can resist other authority sanctions. The outcome of this news and its implementation will be a great experience for Bitcoin and crypto because when the governments shows concerns in the Blockchain, it draws massive awareness for others interests which may influence private organizations, individuals and as well draws attention for other countries to consider adoption of the crypto currencies. And we know how positive the events can also influence Bitcoin volatility.

Now this is complete news. I was reading through the thread below earlier, and the conversation under the thread is about how they plan to use USDT as a means of accepting payment for passage and the debate against freezing the account after it's in their hands. Now that they have made it clear and they thoroughly understand the danger of using USDT that's totally in the control of the US government, which is their enemy. Hormuz require to use a secret code / crypto payment and furute proposals

They shouldn't make mistake of using USDT and they probably won't. In fact, in my opinion using any cryptocurrency other than Bitcoin wouldn't make sense. If they absolutely have to make crypto mandatory, it should definitely be BTC.

A very simple question: Does the Strait of Hormuz belong to Iran!? Is there anywhere I can find information on this? If this is simply an occupation of the Strait of Hormuz, then the outcome for Iran will undoubtedly be bad. If Iran engages in acts of terrorism in international waters (which is precisely the status of the Strait of Hormuz), it will face a host of problems. Not just external ones, but economic ones as well; for example, the major oil producers in the Persian Gulf are already actively diversifying their oil supply routes, increasing oil shipments via pipelines.   The second problem is that the main recipients of oil through the Strait of Hormuz are the countries of Southeast Asia, and-drum roll-CHINA. It seems to me that China will quickly put Iran in its place with its unfounded attempts to gain an unfair advantage In short, the harm to the U.S. and Israel is exactly zero, while the problems for Iran are many. Bottom line: the decision is utterly idiotic In terms of idiocy, it’s comparable to the “terrifying decision by the Russian Federation”-everyone will buy gas for rubles”-I think everyone remembers how that ended?

I don't see them not having the right to demand for toll fees for tankers passage, it's all business and they're in war and would really need the funds as support system. Any other country would have done same long ago. And yea, they chosed the right currency for this, at least a neutral mind on this war would see the significance of bitcoin as a decentralised currency that isn't under the control of any authority to have others from gain access to it. The effect would be a positive one, I believe, although I am not sure if it's gonna be a long or short effect but this if done would expose big captains in the oil industry to bitcoin and they would know for themselves the practical utility and benefits of bitcoin.

A smart government like Iran that made the US government bow down to wanting a ceasefire and coming to an agreement with them won’t be having such a low IQ to want to opt in for the use of USDT for payment, a centralized entity can’t be used where they want everything to be discrete and free from sanctions. This is positive to what Bitcoin was created for and I think that we may see more of such development from other oil nations that make use of the US dollar for exchange or anything of such that we’re seeing in the news now.

Attacking all your neighbors and then telling them that they need to pay you to ship things around their country seems like a bold move.  We'll have to wait and see how it plays out for them.  Seems to me like this is a tragic mistake that will hurt them for a long time as they damage relationships with their neighbors and become dependent on other countries for revenue.  They might just find that other countries find a better solution...

Well that's some news you do not see everyday and it's somewhat good new for Bitcoin showing more people it's benefits as a pseudo anonymous and fully decentralized network. It could have the downside that global powers could heighten their resistance to Bitcoin as a way to avoid sanctions. I don't know how far this arrangement will go, the ceasefire is still very uncertain. Both parties are trying to show they had the upper hand in the deal and from this report, the strait is not open yet to passage with ships still stuck on either side. We may never find this out cause no vessel carrying billions of dollars worth of barrels will risk passing through the strait when it's not guaranteed that they would have safe passage through. I could easily see them having full control of the strait and still charging tolls when all the dust settles.

About the question that DrBeer asked, this can answer the question: To make it simple, it is not an international water but governed by international law. The narrowest part of the strait between Iran and Oman is just 33 to 39 kilometers.

That's helpful info, I've not had the time to research deeply on it yet. I assumed even if it's not directly owned by them now, for them to stake claims on it there has to be a link to that. Lots of choice locations owned by countries were either won through force or mutual agreements. Isreal refusal to cease fire on Lebanon looks to be what's stalling on it being fully effected I wonder if America will stick to not attacking if Iran does not open the strait fully.

One thing for sure, if it's mainly bitcoin then the demand would increase over time. I think that this war will end with this toll fee being a permanent feature and power of Iran in the area. So, all ships passing through there will be required now and that's part of the deal in order for Iran to reshape and fund what has been destroyed during this war on them. While I don't like how it happened but, there's no option for all of the ships and businesses there that need to pass through but to pay. And by having this, I think other important choke points who have ships passing through for free might also demand something like this.

Didn't Iran previous said these oils must be bought using chiness Yuan? Now they are shifting towards bitcoin for charging tolls? Or can both be used? I'm a little confused right now, since i haven't been following this subject lately, so i don't know much. Can anybody tell me what changed or going on?

You can read this topic about it: https://bitcointalk.org/index.php?topic=5579272.msg66577957#msg66577957 Iran wanted yuan and stable coins but now he wants bitcoin. I think Iran wants to add bitcoin to it is what I think. Yuan will be better than stable coins for their goal, but if Iran thinks rightly, they should not accept fiat or fiat stable coins, the best is just bitcoin.

It’s very unfortunate that this is happening. If rising costs lead to higher prices for goods, and fuel shortages make harvests more expensive, we may face a major food crisis and even hunger in less developed countries. I hope that a diplomatic solution will be found as soon as possible, otherwise, this may only be the beginning of much bigger difficulties.

They can still use the Chinese Yuan and bitcoin together to bypass the US sanction. The reason why they will still use the Chinese Yuan is to keep strengthening their partnership with China. I don't even know why the US is imposing sanctions on  more country when they already know that it can lead to dedollarization and the BRICS alliance are always happy whenever the US sanctions any country. Well, it's good that Iran has added bitcoin as a means of payment in order to avoid traces. Now, the US will see that Iran are getting smarter and unfortunately they cannot interfere with bitcoin transactions.

So far, it's positive; the price jumped from $68 to nearly $73, which is a good indication that it's headed to 3 digits. Iran chose Bitcoin because it cannot be frozen. The method of transport is like this : Will Be Destroyed’—Iran’s Bitcoin Toll Sparks $100K Price Prediction Since there is a two-week ceasefire, we will see the market headed upwards, but after the two-week ceasefire, we could see another episode of bombings, and this could harm the market again. I admire Iranian's resilience, but Trump is serious in ending this war in their favor.

De-dollarization is the plan for Iran and by all means necessary, they would try to cut off the American influence in their region. It's already happening and Bitcoin with the Blockchain network is facilitating this, even though the Chinese has been open to their Yuen being used too. I was thinking sometime back they said they were going to be accepting USDT or USD, it seems they figured out that the U.S is still at an advantage if they go that way and hence, they opt for Bitcoin payments that would ensure that the tolls they collect in exchange for the secret code to ships passing through the strait of Hormuz, isn't traced or confiscated due to sanctions.

I think the price of Bitcoin would go up due to an additional fixed demand. Considering the fact that $200 million USD will be collected in Hormuz fees daily (Considering 100 ships). That means $200 million USD in Bitcoin every day must be aquired by ships passing Hormuz Strait in order to pay the transit fee. That is $73 Billion USD in yearly Bitcoin purchases. Which is quite a large investment into Bitcoin.