Bitcoin

  • The Iranian government would enable authorized cryptocurrency miners to resume their endeavors from September 22.
  • The country had announced restrictive measures in May amid an increasing power crunch causing blackouts in many parts of the country.
  • While Iran is endorsing Bitcoin for self-preservation, China is still against decentralized systems to retain maximum control and exert dominance.

According to Iran’s state-owned company for power generation and distribution — Iran Power Generation, Distribution, and Transmission Company (Tavanir) — the ban on cryptocurrency mining will be lifted come September 22.

The Financial Tribune reports that the utility will start resupplying electricity to mining farms in a bid to collect what’s touted as the world’s newest financial assets — Bitcoin and other cryptocurrencies.

Bitcoin Mining

Iran is rolling back its cryptocurrency mining ban

The county’s Ministry of Industries, Mining, and Trade is expected to give out an official diktat soon, reversing the restrictions applied on all miners in May. Simply put, Iran’s national grid will again be fully available for mining cryptocurrencies, a unique initiative to reduce the country’s dependence on the globalized US dollar and other fiat currencies.

Mostafa Rajabi Mashhadi, the spokesman of the nationalized energy company, explained that power consumption in the Islamic Republic is expected to decline in the coming months as the summer has ended.

The country was forced to take regressive steps like a blanket ban since its power deficit was acutely high in the hot month of May. This led to blackouts and load sheddings in multiple parts of the country. Since crypto mining is an energy-intensive process, Iran was forced to ration its electricity and crackdown on miners.

Iran faces severe sanctions from the US and is restricted from directly transacting in the international market. This limits its exposure to the US dollar, which is often considered the de facto globalized currency for trade. Foreign exchange against other fiat currencies is significantly tricky, making it a challenging task to get imports, in turn limiting the scope of growth. This, in turn, makes cryptocurrency an attractive alternative for the country.

According to an Elliptic report, Iran contributes 4.5% of all total Bitcoin mining, raking in revenues of nearly $1 billion each year.

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