President Hassan Rouhani said Wednesday that Iran has banned energy-intensive crypto mining such as Bitcoin for nearly four months as Iran faces major power outages in many cities.
“The ban on cryptocurrency mining is valid until September 22 … about 85% of the current mining in Iran is unlicensed,” Rouhani said in a television speech at the Council of Ministers. ..
Bitcoin (Indian prices) And other cryptocurrencies are created through a process called mining. In mining, powerful computers compete with each other to solve complex mathematical problems. This process consumes a lot of energy and often relies on the electricity produced by Iran’s rich fossil fuels.
Power outages have been widely criticized by Iranians as the presidential election approaches next month. The government blames crypto mining, drought, and surges in summer electricity demand as the cause of electricity cuts.
According to blockchain analytics firm Elliptic, about 4.5% of all Bitcoin mining is done in Iran, earning hundreds of millions of dollars from cryptocurrencies that can be used to mitigate the effects of US sanctions.
Iran’s economy has been hit hard since the inauguration of the former president in 2018. Donald Trump Withdrawal from the 2015 nuclear deal with six Tehran countries and resuming sanctions.
President of the United States Joe Biden’s The administration and other global powers are in talks with Iran to revive the agreement.
Iran has recently embraced crypto mining, providing cheap electricity and asking miners to sell Bitcoin to central banks. Tehran allows cryptocurrencies mined in Iran to be used to pay for imports of licensed goods.
The outlook for cheap electricity has attracted miners, especially from China to Iran. According to Elliptic, about 10 million barrels of crude oil per year, equivalent to 4% of Iran’s total oil exports in 2020, will be needed to generate the electricity they use.
© Thomson Reuters 2021
Cryptocurrency mining banned in Iran for 4 months during a power outage
Source link Cryptocurrency mining banned in Iran for 4 months during a power outage