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Bitcoin Forecast: The Positive News From Iran

The Iranian parliament proposed a new law on centralizing and regulating cryptocurrencies, licenses that will be issued to bitcoin mines for their legal operation.

Iran also plans to insert a national cryptocurrency to settle domestic transactions. It will also introduce a ban on the use of cryptocurrencies mined outside Iran.

Licensing Bitcoin mining operations can solve the downtime that results from illegal mining operations that consume excess electricity. Following the crackdown on bitcoin miners, the Iranian government is now taking steps to license these operations. The general ban on cryptocurrency mining will become lifted soon, or regulations will change in favor of miners.

bitcoin

Iran’s economy is in crisis after the collapse of oil exports, systemic corruption, and poor governance that has lasted for decades. Economic turmoil affected the national currency, the rial, which has seriously depreciated against the dollar since former US President Donald Trump withdrew from the 2018 nuclear deal.

Iran’s Central Bank

Since then, the Central Bank of Iran has been pegged to foreign currencies. Moreover, it tried to oppose capital exports by applying a comprehensive ban on the use of cryptocurrencies mined outside Iran.

The ban helped as an opportunity for Iran to expand and improve power plant infrastructure. As well as, repair existing power grids to mitigate crypto-mania’s impact. Many unlicensed mining companies operate across the country since electricity costs are around $ 0.003 / kWh. That is about forty times cheaper than the world average of $ 0.14 / kWh.

The proposed law further suggests that Iranian cryptocurrency miners can build and operate new power plants. They will manage this by obtaining special permits from the Ministry of Energy. These mining companies can then sell the surplus energy produced by their stations to the Ministry of Energy.

The new regulations could affect the profitability of Bitcoin mining operations across the country as overhead costs, including electricity, are expected to rise.

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