Iran announced plans to accept Bitcoin payments for tolls on ships passing through the strategic Strait of Hormuz, amid ongoing geopolitical tensions. However, experts warn that the practical implementation of Bitcoin transactions at this scale remains elusive due to technological limitations. Bitcoin’s current infrastructure, including slow transaction times and high costs, makes it unsuitable for such large and frequent payments, pushing Iran to explore alternative solutions like stablecoins, which are vulnerable to sanctions and freezing risks.

Iran has a history of crypto involvement, with significant mining capacity and billions in crypto flows linked to the Islamic Revolutionary Guard Corps. Despite this, stablecoins like USDT and USDC, while faster, pose risks because they are issuer-controlled and susceptible to enforcement actions, which Iran seeks to avoid. The country recently legislated a toll system for oil tankers passing through the Strait of Hormuz, where fees could reach $2 million per supertanker, highlighting Iran’s move to leverage crypto for bypassing traditional financial sanctions while grappling with the technical hurdles of using Bitcoin for large-scale transactions.