When Iran began demanding payment in exchange for safe transit through the Strait of Hormuz, it offered the option to pay in cryptocurrency. Likewise, the shadowy network of tankers that have smuggled Russian oil to world markets since the full-scale invasion of Ukraine in 2022 have often been paid this way.
Illicit actors the world over have increasingly turned to cryptocurrency as a way to conduct business while avoiding the risk of US sanctions. In so doing, countries like Russia and Iran are drawing on a characteristic of money that has been around since at least the bronze age: its ability to facilitate trade between strangers and across political boundaries.
In my book Shell Money (2024), which investigates some of the world’s earliest forms of money, I show how similar dynamics have been at play throughout history.
