Virtual Currencies can be Considered as Trade Fund- Iran’s Central Bank

  • Iranian Government is suffering from a shortage of foreign currency and so planning to promote imports by giving permission to use virtual currency for trade purpose
  • Previously they have also implemented the law that allows Central Bbank to use cryptocurrencies as import funds
  • The registered cryptocurrency miners have to go to a formal procedure to certify their cryptocurrencies

Iran has recently revised his country’s cryptocurrency regulation all the licensed bitcoins miners will have to sell coins directly to the central bank for use to import funds. Mostafa Rajabi Mashadi, the Deputy Head yof Iran’s Power Generation, Distribution, and Transmission Company and the Spokesperson for the power industry, confirmed this news.

What Analysts Say

Alireza Shamkhi, a cryptocurrency analyst, told ISNA news agency that this new law is ambiguous and vague. It indicated that the state does not know how the Central Bank will price its cryptocurrencies or its exchange for dollars, rials, or any other currencies at the market prices. He also said that keeping a record of the miners to report their output assets to the Central Bank has not seen in other industries, then why is so in trade. This will reduce the traders’ interest in this sector and reduce the profit of the miners.

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Iran has issued over 1000 licenses to crypto miners, and one of them is the Turkish bitcoin mining giant Iminer. The Power plants of Iran can mine cryptocurrencies, and bitcoin miners can also use the electricity obtained from these power plants.

Actions on Illegal Miners

Mostafa told  Fars News Agency that 1,100 illegal miners have been shut down.  It took time because the blitz on illegal crypto mining was very limited before because the company could not detect all the illegal farms based on their pattern of consumption of power. The miners previously complained about high power tariffs, and due to this, many of them started operating underground using subsidized electricity. Many such miners even set up agricultural and industrial units to avoid their detection.

The biggest advantage of Iran is its cheap electricity, attracting all the miners from China and Ukraine. The country’s power rates are 4,800 rials, which is $0.01 per kilowatt-hour in a normal season and increases to 19,300 rials($0.05) during the peak season, which is summer.

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Steve Anderrson
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.

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