The Islamic Revolutionary Guard Corps (IRGC) controls an overwhelmingly large share of Iran’s entire cryptocurrency economy, according to Kaitlin Martin, Senior Intelligence Analyst at Chainalysis. Stablecoins, rather than Bitcoin (BTC), appear to be the primary vehicle for this activity, the analyst stated.
This crypto footprint is expanding with a newly reported Strait of Hormuz toll system. The initiative represents the latest phase in Iran's broader integration of digital currencies, Chainalysis noted.
Iran's crypto economy has long been a concern for global regulators, given the IRGC's designation as a terrorist organization by the United States. Stablecoins offer a more efficient means of moving value across borders compared to Bitcoin, which is often used as a store of value.
The Strait of Hormuz toll system underscores the IRGC's strategic use of blockchain technology to bypass traditional financial sanctions. It signals a growing trend of state-aligned entities adopting stablecoins for operational efficiency.
Martin's comments were made in a report that sheds light on how the IRGC leverages crypto for financial control. No additional details on the specific size of the IRGC's holdings or the toll system's implementation were disclosed.