- Sources claim Iran charges up to $2 million per vessel for ships passing through the Strait of Hormuz.
- The Iranian government settles transactions in yuan, including the digital yuan, as well as crypto.
Iran may have suffered from the combined might of the US and Israel, but it’s striking them, along with the rest of the world, where it truly hurts most: the global oil supply line. Reports claim that the country’s armed forces, the Islamic Revolutionary Guard Corps (IRGC), have carried out their promise of imposing a hefty toll on all sea vessels passing through the Strait of Hormuz, and it is using the yuan as its settlement currency.
The New Strait of Hormuz Maritime Toll
According to the Atlantic Council, Iran has been charging vessels passing through the Strait of Hormuz up to $2 million per voyage. The figures are subject to adjustment depending on the ship’s country of origin or political alliances, and it may even deny passage to those linked to nations hostile to the Iranian government.
China is Iran’s largest oil customer, accounting for 80% of its seaborne exports. Together, they have devised a way to circumvent sanctions and reduce reliance on the US dollar by utilizing the yuan.
Digital Yuan and Crypto for Safe Passage
At the height of the Middle East conflict, Iran has decided to settle transactions in yuan for those seeking passage in the Strait of Hormuz. It also accepts digital yuan and cryptocurrencies, including Bitcoin (BTC) and stablecoins, for seamless transfers.
The move marks a significant milestone for the digital yuan. The broader support in the Middle East could catalyze massive transaction volumes for the central bank digital currency (CBDC), providing it with the liquidity needed to expand its cross-border use.
On the other hand, the event threatens to speed up the dedollarization of many countries as the US dollar loses its stranglehold on the world’s most critical energy route.
Stress Test for Project mBridge
At this point, it’s unclear how Iran is facilitating digital yuan transactions outside its network of intermediaries. However, sources suggest the measure could be a part of the Project mBridge actual stress test.
The initiative features a multi-CBDC payments platform tailored for high-value settlements away from the surveillance and control of the US Treasury. It was a result of a collaboration among the Bank of Thailand, the Central Bank of the United Arab Emirates, the Digital Currency Institute of the People’s Bank of China, the Hong Kong Monetary Authority, and the Saudi Central Bank.
The project has reportedly processed more than 4,000 transactions worth $55.49 billion. China’s digital yuan accounts for almost its entire volume at 95.3%.
