The Iranian government has given the go-ahead for industrial-scale power plants in the country to start mining cryptocurrencies like Bitcoin, as long as they do not use government-subsidized fuel.
In Iran, the government has been implementing very positive measures for the crypto ecosystem for some time now. In the month of May, through the Ministry of Industry, Mining and Trade, the Iranian government issued more than 1.000 licenses that authorize the operation of mining farms Bitcoin and other cryptocurrencies, within its territory. Now, the government has authorized the country's power plants and plants to become Bitcoin miners, although they will not be able to enjoy state subsidies.
The news was released through a release issued by the Islamic Republic News Agency (IRNA), which confirms that the country's power plants, which comply with the rates established by the state and have the necessary licenses, will be able to operate as miners for the extraction of cryptocurrencies. Mostafa Rajabi Mashhadi, Deputy Director of TAVANIRIran's power company said that once power plants and power stations interested in cryptocurrency mining are certified by the Ministry, they must comply with the tariff set at 0,07 USD/kWh, a truly competitive and favorable price for this activity.
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Mining Bitcoin and other cryptocurrencies in Iran
The opportunity enjoyed by electric companies in Iran is really promising, considering that the country concentrates a significant part of hash rates of the network today, ranking among the top countries with a 3,82% of the total computing power of the Bitcoin network.
Source: University of Cambridge
In addition to state power plants, off-grid power plants will also have the opportunity to start mining bitcoin and other cryptocurrencies, Mashhadi said. In the statement, they will be able to begin operating with 70% of the price of export fuel.
On the other hand, Iran's current electricity rates are one of the cheapest and most economical in the world. In fact, when it comes to electricity costs, Iran is one of the best options for mining cryptocurrencies, although the country's climate and temperature must also be considered. Still, the TAVANIR company also indicated that it will further incentivize power plants by offering them a 47% discount on electricity rates for miners during the summer season, which is where electricity rates generally increase up to 4 times their value.
To date, IRNA reported that 14 requests have been received from mining companies requesting more than 300 megawatts (MW) of power to continue their operations. It is noteworthy that this amount of power corresponds to the electricity consumption of approximately 3 provinces in the country, a TAVANIR spokesman said.
Finally, Mashhadi offered a reward of 10 million Iranian rials (IRR), equivalent to about $237 USD, to anyone who reports cryptocurrency mining establishments operating illegally in the country.
Continue reading: Iran regulates Bitcoin miners
