30 July, 2020 | AtoZ Markets – Mining in Iran is still developing. Iran approved cryptocurrency mining since July last year. The country's Ministry of Industry, Mines and Trade issued more than 1,000 licenses to crypto miners last month. However, not all licensed mines are currently in operation.
Power Plants in Iran Can Mine Cryptocurrencies
Iran now allows power plants cryptocurrencies mining including Bitcoin, said Mostafa Rajabi Mashhadi, deputy head of Tavanir. He said power plants in Iran could be operated as cryptocurrencies mines if they comply with licensed tariffs and have the necessary licenses.
Miners are starting operations in Iran to take advantage of Iran's subsidized electricity rates. By law, miners are charged 4,800 rials for a one-kilowatt hour, which is half the electricity export charge for autumn, winter and spring. However, the billing will be based on the export price of electricity in summer (June to September), which increase four-fold to 19,300 rials/kw.
Data show that mines in Iran have low electricity costs of $0.01 to $0.05 per kilowatt-hour (kWh). However, Tavanir announced that it would cut up to 47% of electricity bills for miners during peak consumption periods. He told IRNA publication:
"The power plants must submit their requests and follow the approved tariff set for cryptocurrency mining centres."
In February, Saeed Muhammad, commander of the Islamic Revolutionary Guard, has proposed the use of cryptocurrencies to escape US sanctions. Iran is isolated from both trade and foreign investment. Making crypto emerging is one of the only options to avoid these sanctions. He said, "We are demanding the creation of a more sophisticated mechanism to bypass sanctions. To circumvent sanctions, we must develop solutions such as the exchange of products and the use of cryptocurrencies with our partnerships (in other countries)."
Think we missed something? Let us know in the comment section below.