Iran starts shipping insurance service backed by Bitcoin cross Hormuz

Iran has started an insurance service backed by the "Bitcoin" currency for shipping companies wishing to cross the Strait of Hormuz, according to what Bloomberg reported, quoting the semi-official "Fars" agency, which referred to documents it said it obtained from the Iranian Ministry of Economy and Finance.

According to the agency, the service carries the name "Hormuz Safe", and the Iranian government says it could generate more than 10 billion dollars in revenues for the Islamic Republic, without specifying a timeframe or explaining the service's mechanism of action in detail.

Iran has practically imposed a closure on the Strait of Hormuz, which is a major corridor for global energy supplies and other goods, since the United States and Israel began launching airstrikes on the country on February 28. Since then, the Iranian government and the "Revolutionary Guard" have been working to establish control over the waterway, including imposing transit fees and other costs, while the insurance service may represent an additional means to raise funds.

According to a screenshot of the "Hormuz Safe" website published by "Fars" agency, the service is dedicated to "Iranian shipping companies and cargo owners." Iran is subject to strict US sanctions, while its use of cryptocurrencies such as "Bitcoin" and "Tether" has witnessed a major expansion since US President Donald Trump began targeting the Iranian economy and energy exports during his first term.