Iran has announced that the country’s power plants will be allowed to mine Bitcoin with excess production.
Green light for power plants
The information was confirmed in a statement to the Islamic Republic News Agency (IRNA) by the director of the company responsible for the country’s power generation. The latter, Rajabi Mashhadi, announced that the power stations could now operate as Bitcoin Mining Farms.
However, the power plants must not increase the current tariffs and must have the necessary licences. The Ministry of Energy said :
“We are now in a situation where the supply of electricity is of great importance to the public…We will not allow anyone to abuse the rates for the agricultural and industrial sectors. »
The Iranian government authorized the mining of cryptomoney as a legal activity in July 2019. Miners quickly moved into the country to take advantage of relatively cheap energy. For example, mining operations in Iran pay between $0.01 and $0.05 for a kilowatt-hour (kWh) of electricity.
Iran turns to mining and bitcoin
Iran has recently issued licences to 14 large mining farms. In addition, more than 1000 BTC mining licenses have already been issued across the country following the legalization of mining as an industrial activity.
Rajabi Mashhadi also stressed that anyone reporting illegal mining of cryptomoney will be rewarded with a bonus of US$2,375. Indeed, mining is allowed but must not exceed the country’s energy needs.
In December 2019, Iranian President Hassan Rohani called for the creation of a Muslim cryptomony with Turkey and Malaysia. The Iranian economy is still suffering from economic sanctions imposed by the United States and other Western countries. This is why the country is very attracted by a digital currency that would allow it to circumvent the blockade.