The state of the local economy was dar from being ideal even before the coronavirus pandemic. As a reminder, U.S. sanctions caused serious damage to the local economy. Iran is struggling to cope with problems. It will thus be tough to get the economy back on track after taking into consideration all the factors. The country made an important decision, that could support its economy.
According to this decision, industrial-scale power plants will be able to operate as Bitcoin miners. Nevertheless, power plants won’t be able to use subsidized fuel. Based on the information provided by the Islamic Republic News Agency (IRNA), power plants in the country could operate as Bitcoin mines. However, they must comply with approved tariffs. Another requirement is to have the necessary license.
A Deputy Managing Director at Tavanir, Iran’s Power Generation Mostafa Rajabi Mashhadi, made a comment regarding this topic.
According to Mostafa Rajabi Mashhadi, they will not allow anyone to misuse tariffs provided for the agricultural and industrial sectors, to produce Bitcoin. Notably, Bitcoin is cryptocurrency number one when it comes to market capitalization.
Iran and crypto mining
Iran’s Ministry of Industries, Mining, and Trade, issued 1,000 licenses for crypto mining in the period between July 2019 and January 2020. As a reminder, the Iranian government authorized crypto mining as an approved industrial activity in July 2019.
Interestingly, the tariff scheme for crypto miners in Iran depends on market factors, such as fuel prices in the Middle East. It is worth mentioning that mining requires a lot of power. However, the price of electricity in the country is very low compared to the rest of the world.
However, the government is trying to limit illegal cryptocurrency mining. Moreover, people who expose illegally operating cryptocurrency mining companies in the country, are eligible to receive up to 100 million Rials, or $2,375.