SynopsisBitcoin (BTC USD) shipping insurance Iran explained: Iran is reportedly launching a bitcoin-backed maritime insurance service, "Hormuz Safe," for vessels transiting the Strait of Hormuz. This initiative, amid heightened US-Iran tensions and restricted shipping, aims to provide cryptographically verifiable policies settled in Bitcoin, potentially generating significant revenue.TIL CreativesBitcoin shipping insurance IranBitcoin (BTC USD) shipping insurance Iran explained: Iran is reportedly turning to bitcoin as part of a new approach to maritime insurance for ships passing through the Strait of Hormuz, according to Fars News Agency, a government-affiliated outlet.Iran Turns to Bitcoin (BTC USD) for Strait of Hormuz Shipping Insurance: What Is the “Hormuz Safe”The report says Iran has launched a shipping insurance service backed by bitcoin for Iranian vessels, based on documents attributed to the country’s Ministry of Economy and Financial Affairs, as reported by Business Insider. The system, called “Hormuz Safe,” would provide what are described as cryptographically verifiable insurance policies for shipments moving through the Persian Gulf, the Strait of Hormuz, and nearby waters, with payments settled in bitcoin.Could Iran’s Bitcoin Shipping Model Generate $10 BillionWhile details on how the service would operate remain unclear, Fars suggested the initiative could generate as much as $10 billion in revenue, reported Business Insider.Babak Zanjani Linked to Controversial Bitcoin Insurance ProposalThe idea has also been linked to Iranian businessman Babak Zanjani, who has been accused of embezzling funds from Iran’s oil ministry. According to a Bloomberg report, Zanjani began promoting the concept on social media on May 8.US–Iran Tensions Continue as Strait of Hormuz Shipping Remains RestrictedThe development comes amid ongoing tensions between the United States and Iran, with US president Donald Trump’s efforts to push for an agreement to end the conflict reportedly failing to produce lasting results. Meanwhile, shipping through the Strait of Hormuz remains heavily restricted.You Might Also Like:How Conflict Is Disrupting Oil, Fertilizer, Helium, and Petrochemical TradeThe disruption has affected oil flows as well as other goods, including fertilizer, helium, and petrochemicals.Bitcoin (BTC) Adoption in Iran Reportedly Rises During Ongoing ConflictData from digital asset manager CoinShares suggests Bitcoin usage in Iran has increased significantly during the conflict, as per the report. Analyst Chris Bendiksen said that, "Around 14 million Iranians, roughly one in six, use Bitcoin, with annual transaction volumes growing 11.8% year-on-year and now representing ~2.2% of Iranian GDP," as quoted by Business Insider.Why Experts Question the Feasibility of Bitcoin Shipping InsuranceDespite these figures, questions remain about the practicality of using bitcoin in a shipping insurance system tied to one of the world’s most restricted maritime chokepoints. Traffic through the waterway remains near a standstill, and both the United States and Iran have indicated continued efforts to block passage of ships attempting to transit the Strait.Sanctions Risks Raise Doubts Over Global Shipping AdoptionThere are also concerns that sanctions risks could make the system difficult to use for global shipping companies, particularly those operating across international routes where exposure to Iranian-linked systems may carry regulatory consequences.You Might Also Like:FAQsWhat is Iran’s bitcoin shipping insurance plan?It is a reported system called “Hormuz Safe” using Bitcoin for maritime insurance.What is the current situation in the Strait of Hormuz?Shipping remains heavily restricted and near a standstill.Read More News on(Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates....moreless