Cryptocurrency Miners in Iran Could Face Higher Power Bills

Asia Blockchain Review
June 24, 2019

Iranian crypto miners and traders may soon have to pay full price for their electricity usage, as indicated in a statement made in Tehran last weekend by the Iranian Energy Minister, Homayoun Haeri.

According to a report by the Financial Tribune, Haeri suggested that all crypto miners and traders be billed their real costs of electricity.

Crypto Demands Rises in Iran on US Sanctions, Electricity Subsidies

U.S. sanctions imposed by the Trump administration on the Middle Eastern nation have caused Iran’s currency to plummet. At the time of writing, the US dollar traded for 42,105 Iranian rials.

Furthermore, Iran’s government spends about US$1 billion per year in electricity subsidies, allowing Iranian households to pay just a fraction of the real cost of electricity consumption. This, coupled with the weakening domestic currency, has made cryptocurrencies an attractive alternative to the rial.

According to a Cointelegraph report last December, Iranians were profiting from digital currency mining despite the crash in the crypto markets.

Iran’s Reportedly Developing New, State-Backed Token

Iran has confirmed that authorities are working to create a state-issued cryptocurrency. According to Alireza Daliri, deputy for management and investment at the Directorate for Scientific and Technological Affairs, the token would be implemented to streamline cross-border transactions.

Daliri also alluded to the U.S. sanctions as the reason for the cryptocurrency project.

“This currency would facilitate the transfer of money [to and from] anywhere in the world. Besides, it can help us at the time of sanctions,” he said.

The blockchain project comes as Iran is moving to ban the purchase of US dollars effective from August this year.


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