Hormuz Toll is 'Cash'... Not Bitcoin

Strait of Hormuz (illustration)

Iranian local media, including Press TV, reported on the 23rd (local time) that the Iranian military received a toll in cash for allowing passage through the Strait of Hormuz.

According to reports, this toll was deposited for the first time today into a single account of the Ministry of Economy and Finance at the Central Bank of Iran.

The Central Bank of Iran confirmed this fact, stating, "It was deposited in cash form," and "While some media outlets speculated that this money would be received in cryptocurrency, this was not true."

The currency of the cash was not disclosed.

Western media, including the Wall Street Journal (WSJ), reported earlier this month that Iranian authorities had received tolls for the Strait of Hormuz in Chinese Yuan or cryptocurrencies like Bitcoin.

Previously, on the 21st, the National Security and Foreign Policy Committee of the Iranian Parliament (Majlis) approved the submission of the 'Law on the Establishment of Iran's Sovereignty over the Strait of Hormuz' to the plenary session, which specifies Iran's control over the Strait of Hormuz and provides a legal basis for collecting tolls.

According to this bill, vessels wishing to pass through the Strait of Hormuz must submit relevant documents to Iranian authorities for permission, and tolls must be paid in Iranian Rial.

Local media reported that the amount of the toll deposited in the Central Bank of Iran today was not disclosed, but it was collected differentially based on the type and quantity of cargo and the risk involved in vessel operations.

Although official criteria for setting tolls per vessel have not been announced, estimates suggested around $1 per barrel for oil tankers, and $2 million (approximately 3 billion KRW) for very large crude carriers (VLCCs).