Iran Grants Bitcoin Miners Exclusive Rights to Electricity  

Iran has granted Bitcoin miners exclusive rights to obtain electricity generated from three power reactors.

Mohsen Tarztalab, General Manager of Thermal Power Plant Holding, said the necessary equipment has been installed in three power reactors, namely Ramin, Nika, and Shahid Montazeri.

Encouraging Bitcoin mining

Cryptocurrency miners will get the surplus electricity from expanding turbines. These turbines never run on gasoline, with power only coming fr natural gas. This represents a much lower source of pollution compared to coal.

However, it is not yet clear how much energy will be produced or allocated to cryptocurrency mining at the three reactors.

Iran allowed 14 Bitcoin mining farms to operate last July, with each one operating with a capacity of 300 megawatts.

But Tehran recently shut down 1,100 illegal Bitcoin mining activities. Meanwhile, 1,000 Bitcoin mining activities received licences in January.

No power plant or part of it can exclusively extract digital assets. This is even after the Iranian Ministry of Energy gave the green light for power reactors to mine.

Iran’s motives for Bitcoin mining

One of the biggest drivers behind Iran’s continued openness to digital assets is that it represents a source to boost the government’s economically troubled resources, News Bitcoin said.

Bitcoin mining is cheap in Iran, which has attracted dozens of miners, both legit and shady.

According to official figures, mining farms in Iran pay less than 4,800 Iranian riyals for a kilowatt hour of electricity.

However, this rate increased four times to 19,300 riyals during the height of the summer heat from June to September.

Reports have indicated that Iran seeks to exploit the mining of cryptocurrencies to finance imports from abroad, given its economic crisis.

Iran suffers from the impact of US sanctions, rampant corruption, and mismanagement of the economy. These have been the main factors behind the country’s high inflation.

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Mohamed Tharwat 20 Articles
Cairo-based journalist, specialized in economics and finance markets