Iran Temporarily Banned Cryptocurrency Mining To Avoid Blackouts

bitcoin 730x440.jpg
bitcoin 730x440.jpg

In recent times, Iran has frequently experienced power outages. From the government of that Middle Eastern country, they determined that the cryptocurrency mining takes an important part in this problem.

For the same reason, Iran decreed the prohibition of this digital activity for around four months, as a measure to face the high associated energy consumption.

Iran banned cryptocurrency mining until September 22

Iranian President Hassan Rouhani commented in a televised speech at a cabinet meeting of his government that “The cryptocurrency mining ban is effective immediately until September 22 (…) about 85% of current mining in Iran is unlicensed”, according to the news agency Reuters.

Today, various locations in Iran are facing power outages due to the lack of capacity to supply the service. It has been a recurring claim of the citizens to the authorities and currently, with a new presidential election in sight, a solution for the situation was presented, according to what was narrated in the aforementioned report.

Through the process of mining cryptocurrencies, units of Bitcoin, Ethereum and many other cryptocurrencies can be created that are governed by similar principles and dynamics. These procedures involve high-performance computers, capable of working with complex formulas while consuming a high level of electricity.

In principle, Iran saw in this more than a problem, an opportunity. Considering that electrical energy can be generated through fossil fuels, the country’s main natural wealth, the government has opened up to this technology in recent years, offering low-cost electricity supply and requiring bitcoin miners to sell their coins to the bank. central. The country even allows these units to be used as exchange currency for the payment of imports of authorized goods.

In this way, from Tehran they considered this route as a way out to activate the economy of a country that is currently facing economic sanctions by the United States, after the exit executed in 2015 by Donald Trump of the agreement signed in the Iranian capital after the Second War. World.

Eventually, the four-month margin of prohibition opens the door to regularize this situation at the governmental and diplomatic level, against which the government of Joe Biden and other international powers have expressed their will to restore the agreement.

According to figures from the blockchain analytics firm Elliptic, cited in the Reuters report, about 4.5% of the world’s bitcoin mining takes place in Iran, an activity that allows them to obtain hundreds of millions of dollars in cryptocurrencies that appease the impact of US economic sanctions. Also, according to the same report, the low associated tariffs have attracted miners from China to Iran, who occupy an important quota of the indicated universe and also reflect that the impact of this measure will transcend beyond the borders of that Asian country. Western.