Crypto Mining Could Add $8.5bn to Iran’s Economy

Crypto Mining Could Add $8.5bn to Iran’s Economy

Iran’s Ministry of Industry has issued more than 1,000 licenses for local cryptocurrency miners, said Amir Naeini, an official from ICT Guild Organization.

He added that the move will add nearly $8.5 billion to the domestic economy.

In June 2019, the country gave the go-ahead for crypto mining. Iran is attractive for the industry due to its cheap power prices.

Naeini said:

“[While] a number of large and industrial farming mines have been set up…High electricity tariffs plus stringent regulations have made the sector less appealing for small investors.”

He indicated that the mining opportunities should be available for anyone interested in the industry. “To achieve that, however, Iran would have to modify the electricity rates and terms.”

The official also said:

“The operating conditions in this industry should not be such that only large capitalists enter the cryptocurrency mining market but that all miners can operate.”

The ICT Guild Organization exerts efforts to boost the local mining conditions. However, this requires changing power rates and enhancing cooperation between miners and power plants.

Iran is one of the main blockchain hubs due to its long-standing sanctions. Experts believe that several countries will make major changes in their crypto regulations over the next two years.

“This will open the floodgates as regulators become more comfortable and organizations around the globe realize the benefits digital currencies provide, such as low transaction fees and instant payments,” said Jessica Renden, head of operations at cryptocurrency exchange Cointree.

“Within five years, we expect all first-world countries to have released, or to be working on their own digital currency if they aren’t already,” he added.

On January 5, Cryptolydian reported that Bitcoin is trading at nearly 1 billion Iranian rials through P2P trading platform LocalBitcoins, based on the official exchange rate.

BTC has been trading at a small premium in some countries, compared to the levels reported in Iran.

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Rabea Maguid 551 Articles
Rabea Maguid is a journalist completely obsessed with crypto industry. He holds B.A. from Al-Azhar University, and has a background in journalism and economics. Rabea Maguid likes to think about the future in a positive way, and sees blockchain as a potential driver of deep societal change.