Crypto mining industry: $8.5 billion booster to Iran’s economy

Amir Hossein Saeedi Naeini, an official with Iran’s ICT Guild Organization, reports that the crypto mining industry can boost Iran’s economy by $8.5 billion. He recommended lowering the electricity rate to support the crypto mining industry further and increase net revenues.

The countries’ Ministry of Industries, Mining, and Trade also issued over 1000 licenses for cryptocurrency mining units. Iran authorities believe that reducing the electricity price rate will help improve the mining industry and generate more revenue. This is because many large crypto mining facilities operate throughout Iran, but small mining firms find it hard to thrive and are forced to folding up because of electricity costs.

Amir Hossein Saiedi was quoted by IBENA:

Our studies show that the crypto mining industry has the potential to add $8.5 billion to the economy…but high electricity tariffs plus stringent regulations have made the sector less appealing for small investors.

Rouhani’s crypto stand

Reportedly, the Iranian president also, Hassan Rouhani, exhorted many other Asian countries towards creating a unified cryptocurrency. He made the challenge at the “Kuala Lumpur Summit 2019,” where he proposed an Islamic financial payment with Muslim countries trading in local currencies and the creation of a Muslim cryptocurrency.

Rouhani reportedly advised cutting reliance on the U.S. dollar to avoid the effects of market fluctuation.

Iran’s crypto mining industry and government’s regulation

In November 2019, Iran also introduced a bounty law to catch illegal crypto miners that use electricity without government permission. The bounty is given to whoever helps in exposing crypto miners using electricity illegally, the amount equivalent to around 20% of the recovery of the damage caused to the national power grid.

Iran’s Energy Minister also explained that the average price of the export of electricity would be 9,650 rials ($0.08). Each kilowatt-hour will be used as a baseline to calculate the cost of electricity consumed by crypto miners.

Towards encouraging crypto miners, the minister also said that the electricity price would be half of 9,650 rials during eight months of the year, and it would be quadrupled for the rest of the four months. In effect, during the cold months, the price would be $0.04 per KWh in cold months and $0.16 during the four months.

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