Iran Pushes $10B Bitcoin Insurance Plan for Strait of Hormuz

[The Cryptovator]

As the title says, Iran Pushes a $10B Bitcoin Insurance Plan for the Strait of Hormuz. Found that during scrolling newsfeed, I am not sure about that $10B target for a year, but it seems the targeted amount is quite bigger. If truly they could raise that amount for insurance in Bitcoin, then it would be a bigger adaptation as well. An interesting thing is even the US and Iran are fighting each other, but both seem friendly enough about Bitcoin policy.

Do you think Iran aims to raise Bitcoin due to avoiding US sanctions against insurance funds? Because payment in Bitcoin wouldn't be traced unless any party shared the details. The US won't be able to block the Bitcoin unless Iran deposits it into any CEX where Trump could interfere. Despite the war, this idea seems ideal to me about charging Bitcoin for insurance to pass Hormuz.

[Oshosondy]

I saw the news on Ciondesk few hours ago, but according to the Iranian news that I read about it, I did not see bitcoin mentioned which is the reason I decided not to post about it.

https://farsnews.ir/Rahgozar_b/1778916889907171744/Irans-Economy-Ministry-Proposes-Insurance-Based-Model-to-Manage-Strait-of-Hormuz

But I think there would be a reason bitcoin is mentioned about the news on Ciondesk and Yahoo and which would be a very good thing. Over $500 million Iran money was seized recently and they are USDT. I wonder why would Iran even have money in a centralized stable coins when there is bitcoin.

So this can be very true because stable coins are not options at all, but bitcoin is a very good option because it is not centralized. Iran really mean that they will have some control over Stait of Hormuz even after the war is over.

If bitcoin can be used successfully by Iran, this could make other countries to start seeing bitcoin like gold, but this may weaken the United States dollar.

It is also good to know this:

A signed digital receipt would then be provided to the cargo owner. The website listed in the report appeared to show only a landing page. Full policy terms, underwriters, exclusions and claims procedures were not immediately available.

CoinDesk could not independently verify whether Hormuz Safe is operational or whether any cargo owners have used it.

The best money that Iran can use is bitcoin, not even yuan.

[BIT-BENDER]

Iran has good reason for wanting to push this $10B Bitcoin insurance plan for the strait of Hormuz I believe they have slept over in and had several discussion on how productive the push will be for them.


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Source https://finance.yahoo.com/markets/crypto/articles/iran-pushes-10b-bitcoin-insurance-134150802.html?

But this image from the same link highlights some of the disadvantages to this and also in the post it self this move is not outrightly a possible move.
From the highlighted hindrances the most severe is Volatility, Bitcoin volatility can be a hindrance for the practicality of this move but if both parties involved in the transaction can neglect this hindrance and other hindrances it could give birth to endless opportunities.

[Zlantann]

Iran has good reason for wanting to push this $10B Bitcoin insurance plan for the strait of Hormuz I believe they have slept over in and had several discussion on how productive the push will be for them.


how to type an exponent in word

Source https://finance.yahoo.com/markets/crypto/articles/iran-pushes-10b-bitcoin-insurance-134150802.html?

But this image from the same link highlights some of the disadvantages to this and also in the post it self this move is not outrightly a possible move.
From the highlighted hindrances the most severe is Volatility, Bitcoin volatility can be a hindrance for the practicality of this move but if both parties involved in the transaction can neglect this hindrance and other hindrances it could give birth to endless opportunities.

Volatility shouldn't be a problem since the coins can be converted immediately to fiat. They can even decide to keep the coin until the price appreciates. Sanctioned risk is not a challenge because privacy tools could be used to conceal the source of the Bitcoin payment. Limited legal recognition is also not valid because Bitcoin is accepted in almost all countries of the world. And its decentralised nature allows any country to use it for payment.

Bitcoin remins the best currency that can be used by Iran to bypass sanctions. So if well implemented this Insurance Plan is workable with Bitcoin.

[The Cryptovator]

But I think there would be a reason bitcoin is mentioned about the news on Ciondesk and Yahoo and which would be a very good thing. Over $500 million Iran money was seized recently and they are USDT. I wonder why would Iran even have money in a centralized stable coins when there is bitcoin.

It's quite surprising to me as well that the country is fighting with the US, but they weren't aware USDT would be frozen. Even they had accepted USDT, but they should convert them all into Bitcoin. So no one could freeze their funds. Probably that's the reason also they want to charge through Bitcoin to avoid further fund freezes.

If bitcoin can be used successfully by Iran, this could make other countries to start seeing bitcoin like gold, but this may weaken the United States dollar.

This should be a lesson for other countries that are in fear of sanctions. If they trade with Bitcoin payments, then no one could trace them or freeze the funds. I believe Iran will be successful even though their goal is high, but who knows if they could reach their target.

[alani123]

What is Iran going to do with so much BTC? Surely they'll be blocked from major exchanges.

So? Even if they hit 1% of their target, it's not like they can dump $10m in the open market without losing a substantial amount of their holdings.
Are they planning to create a circular economy with BTC? Wouldn't that undermine their own currency and ability to enact monetary policy?

Big questions.
I'm waiting to see transactions traced to believe it.

[Cryptomultiplier]

This is actually a new development from the country of Iran that intended to use crypto currency, that is the more stablecoins initially, but am glad they now see that using the USDT or USDC pegged to the dollar is a bigger risk that could be countered by the U.S by freezing their assets or seizing it since they control that stablecoin.
They got a better advice and are actually applying Bitcoin as a censorship resistant and unfreezeable value in this new approach.

If this gets accepted and implemented by countries plying that trade route, it would make Bitcoin become backed by the flow of global commerce instead of the original notion that it is backed by nothing.

[promise444c5]

Do you think Iran aims to raise Bitcoin due to avoiding US sanctions against insurance funds? Because payment in Bitcoin wouldn't be traced unless any party shared the details

Yes, to me it’s one of the major reasons I can think of..
I don’t think it’s really about tracing, it’s about what you mentioned after it which is  freezing of their assets in stable coins..

Again, my guess will be, they won’t be accumulating the entire $10B in BTC .. probably BTC is just going to be their settlement layer/means of payment..

[tread93]

But I think there would be a reason bitcoin is mentioned about the news on Ciondesk and Yahoo and which would be a very good thing. Over $500 million Iran money was seized recently and they are USDT. I wonder why would Iran even have money in a centralized stable coins when there is bitcoin.

It's quite surprising to me as well that the country is fighting with the US, but they weren't aware USDT would be frozen. Even they had accepted USDT, but they should convert them all into Bitcoin. So no one could freeze their funds. Probably that's the reason also they want to charge through Bitcoin to avoid further fund freezes.

If bitcoin can be used successfully by Iran, this could make other countries to start seeing bitcoin like gold, but this may weaken the United States dollar.

This should be a lesson for other countries that are in fear of sanctions. If they trade with Bitcoin payments, then no one could trace them or freeze the funds. I believe Iran will be successful even though their goal is high, but who knows if they could reach their target.

You know its hilarious for a country that has the lowest energy costs subsidized through bitcoin you think they would be smart enough to not get their crypto currency funds aka this stablecoins that are frozen lol. Iran has a lot of Bitcoin how did they let that happen lol

[CryptoYar]

This Hormuz Safe project is textbook case of weaponization of Bitcoin to circumvent traditional financial network by nation states. Iran main reason is to leave no doubt, to get out of United States banking sanctions and secondary sanctions.
I think this is sign of usefulness of Bitcoin as censorship resistant infrastructure, but it is bit of double edged sword in terms of pushing for world wide adoption. First, it signals that even world superpowers cannot block Bitcoin policy from playing part in global trade. It, however, places mainstream corporations in difficult position. Any global shipping firm engaging in this system faces prospect of being instantly shut out of U.S. financial system through secondary sanctions. It will not pull Bitcoin down, but will make asset full blown geopolitical conflict zone between Trump economic policies and sanction busting countries.

[m2017]

As the title says, Iran Pushes a $10B Bitcoin Insurance Plan for the Strait of Hormuz. Found that during scrolling newsfeed, I am not sure about that $10B target for a year, but it seems the targeted amount is quite bigger. If truly they could raise that amount for insurance in Bitcoin, then it would be a bigger adaptation as well. An interesting thing is even the US and Iran are fighting each other, but both seem friendly enough about Bitcoin policy.

Do you think Iran aims to raise Bitcoin due to avoiding US sanctions against insurance funds? Because payment in Bitcoin wouldn't be traced unless any party shared the details. The US won't be able to block the Bitcoin unless Iran deposits it into any CEX where Trump could interfere. Despite the war, this idea seems ideal to me about charging Bitcoin for insurance to pass Hormuz.

What a brilliant way to disguise extortion (bitcoin is merely a tool of necessity under sanctions) for the movement of tankers through a strait (a natural landscape feature that no country built), held by armed force, and to create a global oil shortage (and problems for millions of people) for their own benefit (due to external pressure, of course, but that's no excuse).

After blocking the USDT, these guys figured out exactly which crypto currency to use. Moreover, they cleverly "wrapped" it up as insurance.

Look at the situation from a slightly different perspective. If not for this military conflict, the preconditions for such unconventional use of bitcoin at the national level would not have arisen.

[ContentWriter]

I'm just curious how they intend to pull this off with the US blockade of the strait of Hormuz. Or does the Bitcoin insurance somehow has a way of settling the US forces stopping ships from going through the strait? Granted, settling payments in BTC could be a way to circumvent sanction for Iran, but we must not lose sight of the fact that shipping companies that actually pay the Iranians would likely face sanctions from the US and possibly EU.

[toryn388]

I’d be very careful with this story until there’s a solid source. $10B in Bitcoin for Hormuz insurance sounds huge and also very politically loaded.

[Luzin]

Do you think Iran aims to raise Bitcoin due to avoiding US sanctions against insurance funds? Because payment in Bitcoin wouldn't be traced unless any party shared the details

Yes, to me it’s one of the major reasons I can think of..
I don’t think it’s really about tracing, it’s about what you mentioned after it which is  freezing of their assets in stable coins..

Local media in my country also said that payment using Bitcoin has become the safest alternative for now from dependence on the US Dollar. Remember this strategy can avoid international sanctions, get out of the dominance of the dollar banking system (SWIFT), and create a source of state revenue that cannot be blocked. Yes, the US has control over USDT, so last April the US blocked $344 million suspected to be related to the Central Bank of Iran and the Islamic Revolutionary Guard Corps (IRGC).

Again, my guess will be, they won’t be accumulating the entire $10B in BTC .. probably BTC is just going to be their settlement layer/means of payment..

I think not only accumulation but Iran does not want to be controlled by world currencies like the US Dollar.