The government of Iran has approved a decision that would allow industrial-scale powerplants in the country to operate bitcoin miners in their plant, given they don’t use subsidized fuel. The announcement was made on July 27th in the Islamic Republic News Agency (IRNA), a local publication.
Mostafa Rajabi Mashhadi, Deputy Managing Director of Iran’s Power Generation, Transmission, and Distribution Management Company, Tavanir. Mashhadi commented on the government’s decision to approve crypto mining, that now they are focusing on making sure that these industrial-scale businesses do not exploit the subsidized electricity meant for farmers and underprivileged. He said:
“Now we’re in a situation where the supply of electricity is of great importance to the public. We will not allow anyone to misuse tariffs provided for the agricultural and industrial sectors to produce Bitcoin while it’s worth more than $9,000.”
The Iranian government had approved crypto mining back in July 2019 and issued 1,000 operating licenses. Since then, fourteen recipients of the permit have requested 300 MW electricity energy, which is equal to the consumption of three provinces in the country.
Now that the government has also approved mining for power plants, it would be imperative to ensure a balance between the amount of energy being consumed for mining and the standard requirements of the public.
The tariffs offered by the Iranian government on electricity for mining cryptocurrency depend on several factors, like the cost of oil, the abundance of energy, and many more similar elements.
Iran Turns to Crypto Amid Troubled Times
Iran has been facing a mounting financial crisis, which has been only aggravated by several trade sanctions imposed by the US. The value of the national fiat has also fallen significantly since 2011, which has forced the government to look for an alternative.
Given Iran offers one of the cheapest electricity, bitcoin and crypto mining always seemed a profitable industry that can be nurtured. The government’s recent decision to allow power plants to operate bitcoin miners appears to be a step in the right direction.