Iran: “Bitcoin mining will be in the national economic cycle”

According to Abdol Nasser Hemmati, the governor of the Central Bank of Iran (CBI), the government may be planning to allow cryptocurrency mining some freedom and finally authorize this activity despite the absence of rules allowing the legal trade of cryptocurrency.

Due to the cheap electricity prices, cryptocurrency mining has been more popular than ever in Iran. However, these operations have resulted in a significant energy consumption increase of 7% in the country, which had forced the government to take action. In fact, in June the authorities have seized approximately 1,000 Bitcoin mining machines installed in two former factories. Moreover, some reports stated that Bitcoin miners from China are spread throughout the country due to low energy prices in Iran.

The two major conditions for Bitcoin Mining:

Abdol Hemmat said that in order for this initiative to work two major conditions must be met: 

He further explained that cryptocurrencies mining should be done based on the price of electricity for export. As a matter of example, Iran exports power to other countries at prices from 40-100% higher than it provides internally.

He also insisted that the miners should be part of the economic cycle and that the CBI will reject any currency whose value is determined by the price of the national currency or gold.

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