Govt. economic committee approves mechanism for mining cryptocurrencies

July 22, 2019

TEHRAN - Iranian government’s economic committee on Sunday approved a mechanism for mining cryptocurrencies as Iran rushes to bring its growing mining farms in line with national laws, Mehr news agency reported.

“The government’s economic committee has approved a mechanism for mining digital coins and it will later be put to discussion at a cabinet meeting,” the Governor of Central Bank of Iran (CBI) Abdolnaser Hemmati announced. 

As reported, the committee also passed a proposal for applying export rates for the electricity used by the domestic miners.

According to Deputy Minister of Energy Homayun Haeri, “a plan to apply the exported electricity rate for mining farms was approved by the government’s economic committee and will soon be discussed and voted on by the cabinet.”

Iran has been recently wrestling with over consumption of electricity by cryptocurrency mining farms across the country as many have rushed to mine coins due to cheap electricity.

Mining cryptocurrencies is, in nature, a very energy-consuming process. Some scholars even believe that due to its exponential growth it might consume the world's entire electrical energy by 2020. 

In late June, Iranian Energy Ministry announced that due to bitcoin mining processes the country’s electricity consumption increased by seven-percent this summer.

Consequently, the ministry proposed that the costs of electricity for cryptocurrency miners should be determined based on electricity export rates.

Following the Energy Ministry, Iran’s Power Generation and Distribution Company (known as TAVANIR) also announced that using electricity for mining cryptocurrencies is illegal and those household or commercial subscribers that use electricity for such activities will be cut off from the national grid.

EF/MA

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