Iran permits power plants to mine Bitcoin

0
iran

 175 total views

  • The President of Iran supports the idea of creating a new cryptocurrency dubbed Muslim cryptocurrency.
  • The Iranian government is requesting the cryptocurrency mining firms to comply with the Tariffs.
  • Iran has so far given green lights to 14 cryptocurrency mining firms.

After the recent conflict with the U.S. government, Iran has now officially given green lights to cryptocurrency and bitcoin mining in particular. The announcement came to light a few days ago on the Islamic Republic News Agency (IRNA)

When the deputy managing director at Tavanir, Mostafa Rajabi Mashhadi, told the publication that, industrial-scale power plants have the authority to mine bitcoin

He further said that the mining applicants must register with a license to operate from the Ministry of Industry, Mine, and Trade. In fact, the power plants must obey the tariffs set for cryptocurrency mining.

The initiative shows that Iran is adapting an abiding approach towards the bright future of the country. Indeed, this step of permitting the power plants to mine bitcoin suggests that Iran will be open to welcome cryptocurrencies in the near term. 

In an interview with the IRNA, Mostafa Rajabi Mashhadi said:

“The power plants must submit their requests, and follow the approved tariff set for cryptocurrency mining centers.”

Iranian history with cryptocurrency mining

Miners in Iran have been benefiting from the subsidized electricity rates for quite some time now. As of now, miners pay $0.01 to $0.05 per kilowatt-hour (KWh) of electricity, it seems rather appalling.

The electricity rates went up amid the summer season, provoking Tavanir to cut almost 47%of the electricity tariffs for mining entities during the summer period.

Mostafa Rajabi Mashhadi told the Islamic Republic News Agency that power plants cannot use the subsidized fuel to mine bitcoin as it does not comply with the tariffs.

He further 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.”

Last year, the Ministry of Industries, Mining, and Trade authorized cryptocurrency mining as the approved industrial activity and issued 1,000 licenses. As per the news, the Iranian government has issued the work permit to 14 cryptocurrency mining firms. Each mining firm will have a capacity of 300 megawatts.

Lastly, Iran will be rewarding individuals that help to expose the illicit cryptocurrency mining operation with a bounty of 100 million Rials equivalent to $2,375.