Iran views BTC as a strategic asset, but USDt still dominates oil tolls: BPI

Iran’s government naming Bitcoin (BTC) as a payment method for oil ships crossing the Strait of Hormuz highlights its role as a neutral, strategic asset, according to Sam Lyman, head of research at digital asset advocacy organization Bitcoin Policy Institute (BPI).

The government selected BTC as one of the payment methods for the tolls because of its censorship-resistant qualities, Lyman told Cointelegraph. He said:

“This is one of the most significant situations where Bitcoin is very clearly a strategic asset. The reason why Iran wants to use Bitcoin for these transactions is that no one can freeze Bitcoin. No one can shut down the Bitcoin network.”

Iran is accepting oil tolls in Chinese yuan, US dollar-pegged stablecoins and BTC. However, there is “no onchain evidence” of a BTC toll payment so far, Lyman said, adding that the “majority” of Iran’s crypto transactions are denominated in US dollar stablecoins.

Transactions carried out by the Iranian Revolutionary Guard Corps account for nearly half of the total crypto market volume in Iran. Source: BPI

The announcement from the Iranian government highlights why US lawmakers should recognize and treat Bitcoin as a strategic asset, rather than taking a hostile regulatory stance toward it or dismissing digital assets altogether, Lyman told Cointelegraph.

Related: Bitcoin community weighs in on reports of Iran’s crypto toll for oil ships

Stablecoin confiscation is just a cost of doing business