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Is Crypto-mining going to get expensive in Iran?

Iran’s deputy energy minister has reportedly said that electricity bills for crypto miners will be calculated in accordance to real prices going forward, Iranian economic daily newspaper Financial Tribune reported on yesterday.


Homayoun Haeri, who is the deputy to the Energy portfolio, has stated that electricity rates charged for cryptocurrency mining activities should be priced according to the rates established for power exports (much higher than the subsidized rates currently offered). The Iranian government subsidizes ~$1 billion annually to bridge the gap in real electricity expenses and what end-consumers are billed, Financial Tribune writes.


As of December 2018, Iranians were profiting from crypto mining despite the prolonged crypto winter coupled with the volatility in the national currency caused by reinforced United States sanctions on oil exports.

 

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Iran had demonstrated a marked positive inclination towards crypto mining in September 2018, with a majority of the government authorities — including Ministry of Information and Communications Technology, Bank Markazi, the Iranian central bank, the Ministry of Energy, and others — accepting crypto mining as a legitimate sector.

The then Secretary of Iran's Supreme Cyberspace Council stated that the Iranian National Cyberspace Center was in the process of developing a platform for mining regulation and a regulatory framework.
In a bid to create economic stability in the country, the Iranian government has also been considering launching its own state-backed cryptocurrency; an Iranian stablecoin. In August 2018, Iran’s National Cyberspace Center issued a public statement that the draft for the government-backed crypto project was ready.

Clearly nations are looking at Crypto as a way to beat poor economic policy and international sanctions, however, the viability of this in the long-term is suspect and the potential removal of electricity subsidy in Iran could plunge the country into lower economic activity.

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