The Iranian government has authorized power plants, which use renewable sources, to provide electricity to Bitcoin and other cryptocurrency miners.
Iran banned Bitcoin mining again this summer to conserve energy and cope with high energy demands from its residents, caused by extreme heat in the region. According to weather and disaster news site MeteoSeba, temperatures in the country reached 54 degrees Celsius (54 °C) last week.
Due to this, Mostafa Rajabi Mashhadi, chairman of Iran's Tavanir Power Generation and Transmission Company, had issued a new temporary ban on Bitcoin and other cryptocurrency mining, calling on companies engaged in this activity to stop their operations in Iranian territory. The measure sought to reduce energy consumption in the power grid to prevent power outages and ensure the electricity demand of its institutions, companies and citizens.
However, the authorities recently approved a New resolution to reopen the doors to Bitcoin mining in the country, Under some conditions.
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According to reports from the Financial Tribune newspaper and local media, seen by journalist Lubomir Tassev, in Tehran The Ministry of Energy has given the green light to power plants, which are supplied with renewable energy sources, to provide electricity to Bitcoin miners. at the end of summer.
The first of the conditions set by the Iranian government is that the energy used by blockchain miners must come from renewable sources. The second is that power plants can sell electricity only to certified crypto miners, who have a license to carry out such activity in the territory.
In addition to changing its regulations to unlock Bitcoin miners' access to renewable energy, the Iranian government has also considered making it easier for them to access renewable energy.
According to Mashhadi, until now, Bitcoin and cryptocurrency miners had to obtain energy from generating plants located very close to their facilities. However, the new resolution modifies this condition and establishes that crypto mining farms can access energy from any plant located nationwide, as long as the electricity consumed is generated from renewable sources.
Iran's relationship with cryptocurrencies
While Iran has taken certain actions against bitcoin and other crypto-asset mining, seeking to preserve energy for the benefit of its citizens, the government has also been encouraging the use of cryptocurrencies in the country, to some extent.
In April last year, the Iranian Central Bank authorized the use of Bitcoin (BTC) in the payment of imports, citing transparency, immutability, decentralization and network security as keys to overcoming trade blockages that have been imposed by Western governments, such as the United States, against the nation.
As for crypto mining, last September, the Iranian government allowed Bitcoin mining farms to temporarily resume their activities in the territory. As reported by this outlet, in October, the West Asian country occupied nearly 7% of Bitcoin's global hash rate.
However, data from the University of Cambridge’s Centre for Alternative Finance, updated earlier this year, notes that Iran’s dominant hash rate has fallen significantly in recent months in the wake of the bans, with less than 0,2% of Bitcoin’s hash rate operating in the territory currently.
On the other hand, Iranian authorities are expected to install a cryptocurrency ATM on Kish Island, specifically at the island's airport, ahead of the 2022 Football World Cup. This is to offer visitors the possibility of exchanging their crypto assets for the local currency.
Continue reading: Renewable energy use in Bitcoin mining increases to 59,5%
