Amir Hossein Saeedi Naeini, an official with Iran’s ICT Guild Organization, reports that the crypto mining industry can boost Iran’s economy by $8.5 billion. He recommended lowering the electricity rate to further support the crypto mining industry and increase net revenues.
The countries’ Ministry of Industries, Mining and Trade also issued over 1000 licenses for cryptocurrency mining units. Iran authorities believe that reducing the electricity price rate will help improve the mining industry and generate more revenue. This is because many big crypto mining facilities operate throughout Iran but small mining firms find it hard to thrive and are forced to folding up because of electricity costs.
“Our studies show that the crypto mining industry has the potential to add $8.5 billion to the economy…but high electricity tariffs plus stringent regulations have made the sector less appealing for small investors,” Amir Hossein Saiedi was quoted as saying by IBENA.
Reportedly, the Iranian president also, Hassan Rouhani charged many other Asian countries towards creating a unified cryptocurrency. He made the charge to at the “Kuala Lumpur Summit 2019,” where he proposed an Islamic financial payment with Muslim countries trading in local currencies and the creation of a Muslim cryptocurrency.
Rouhani reportedly made this charge to cut reliance on the U.S. dollar and whether the effects of market fluctuation.
Iran in November 2019 also introduced a bounty law to catch illegal crypto miners and use electricity without government permission. The bounty rewards whoever helps in exposing crypto miners using electricity illegally with around 20% of the recovery of the damage caused to the national power grid.
Iran’s energy minister also explained that the average price of the export of electricity would be 9,650 rials ($0.08). Each KWh will be used as a baseline to calculate the price of electricity consumed by crypto miners.
Towards encouraging crypto miners also, the minister said electricity price would be half of 9,650 rials during eight months of the year, and it would be quadrupled for the rest of the four months. So in cold months price would be $0.04 per KWh in cold months and $0.16 during the four months.