Iran has reportedly launched a Bitcoin-based marine insurance service aimed at its shipping companies navigating the Hormuz Strait.
On May 18, Bloomberg News cited a document from Iran's Ministry of Economic Affairs and Finance, as reported by the semi-official Fars News Agency, stating that the service, named "Hormuz Safe," has been initiated.
The Fars News report included a screenshot from the insurance company's website, which claims the service offers "fast and verifiable digital insurance to Iranian shipping companies and cargo owners." However, it did not clarify how the insurance operates or whether foreign shipping companies can also utilize it.
According to Fars News, the Hormuz Safe website states that cryptographically verifiable insurance certificates will be provided for cargo passing through the Persian Gulf and the Hormuz Strait, with payments settled in Bitcoin. The coverage begins as soon as the cargo is verified, and a signed receipt will be issued to the cargo owner.
This insurance service aligns with Iran's efforts to institutionalize control over the Hormuz Strait. Bloomberg noted that the Iranian government and the Islamic Revolutionary Guard Corps (IRGC) are working to formalize tolls and various fees for the strait, suggesting that the insurance service could serve as another means of securing funding.
However, the practicality of a Bitcoin-based marine insurance system remains uncertain. Bloomberg pointed out that unlike stablecoins pegged to fiat currencies like the dollar, Bitcoin's high price volatility poses limitations for its use as a payment method.
Since the onset of airstrikes by the U.S. and Israel on February 28, Iran has intensified its control over the Hormuz Strait. Reports indicate that the Iranian government and the IRGC have demanded fees of up to $2 million (approximately 30 billion won) from certain vessels.
Additionally, on May 18, Iran's Supreme National Security Council officially launched the "Persian Gulf Authority" to manage navigation through the Hormuz Strait, claiming to be the legal representative body for overseeing strait navigation.
It remains unclear how directly Hormuz Safe is connected to the IRGC or Iran's plans for an official toll system. However, given that Fars News has close ties to the IRGC, interpretations suggest that this report is not unrelated to Iran's control strategies for the strait.
Meanwhile, Ebrahim Azizi, head of the Iranian Parliament's National Security Committee, stated that only vessels cooperating with Iran will benefit from the designated navigation system, adding that parties involved in the U.S.-Israel war against Iran will be prohibited from using the route.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.