Iran has reportedly launched a plan to ease the ongoing global shipping crisis in the Strait of Hormuz. According to Iran’s state media, the country has launched a digital insurance platform, called “Hormuz Safe”, that will allow international commercial ships to pass through the blocked waterway after paying a premium settled entirely in cryptocurrency like Bitcoin.Citing Islamic Revolutionary Guard Corps (IRGC)-affiliated Fars News, Iran international reported that, the platform has been introduced to provide insurance coverage for maritime cargo passing through the strategic waterway. Moreover, it is expected to generate more than $10 billion in revenue for Iran, allowing the nation to maintain tight control over the strategic chokepoint while offering a peaceful resolution to other countries.
What is ‘Hormuz Safe ’ and how it will work
The proposed model shifts the management of the Strait of Hormuz from a strict military blockade to a commercial insurance framework. Under this system, Iran would issue “marine insurance policies” and “certificates of financial responsibility” to passing cargo vessels, as per the report. The initial phase of the insurance will cover non-military risks, including, cargo inspections, vessel detentions, legal confiscations and the insurance policy will exclude any damages resulting from direct weapon strikes.Cryptocurrency is being used to gain financial sovereignty, bypass traditional banking middlemen, send cheaper and faster cross-border payments. This technology operates on decentralised, blockchain-based networks that provide users with direct control over their own funds.Iran is said to have chosen Bitcoins as the payment method to bypass traditional Western banking systems and sanctions. “Hormuz Safe” will operate entirely on a digital blockchain ecosystem. According to the platform’s newly-launched website (via Benzinga), the program utilises cryptographic verification to log cargo transits securely.“Hormuz Safe provides shipping companies and cargo owners with fast, verifiable digital insurance — paid via Bitcoin and settled at the speed of the blockchain,” the official website reads, Benzinga reported. Tehran has blocked the Strait, barring any vessels associated with its “enemies” after February attack.
