The Minister of Industry, Mines, and Trade thinks the Iranian government should not overlook the opportunities offered by the crypto industry. The authorities stop cryptocurrency mining operations every winter, arguing that this activity causes numerous power outages that affect heating systems.
The Central Bank of Iran (CBI) and the Ministry of Commerce recently agreed to link the payment platform of the financial institution to a trading system. In that way, Iranian companies may make and receive payments using cryptocurrencies, the Mehr News Agency reported.
Alireza Peyman-Pak is Minister of Industry, Mines, and Trade of Iran and Director of the Iran Trade Promotion Organization (TPO). He announced that the new payment mechanism would start operating within two weeks.
Payman-Pak said it should provide new opportunities for importers and exporters to use cryptocurrencies in their international agreements. He also stressed that the Iranian government should not overlook the economic and commercial possibilities of the crypto industry. Of course, he was referring to decentralized crypto assets such as Bitcoin (BTC) and Ethereum (ETH).
The minister expressed that all Iranian economic actors might use those cryptocurrencies in their international deals. For example, he said they might use the ruble, rupee, US dollar, or euro to acquire cryptocurrencies like Bitcoin.
The official explained that Iranian traders might pass the crypto asset to sellers or importers as a form of credit. He stated that the cryptocurrency market builds on that feature, for which their economic actors may use it quickly and widely.
Uncertainty has plagued the cryptocurrency industry in Iran since the leading blockchain organization raised concerns about some regulatory rules. Besides, the government has also been implementing regulated power outages to local Bitcoin miners, which affects the hash rate of that business.
Although Bitcoin Mining is Legal in Iran, It Hangs by a Thread
The Central Bank of Iran authorized the operation of Bitcoin mining farms in the country. However, the success of that industry seems destined to depend on the seasons of the year.
At the moment, the authorities stop the operations of cryptocurrency mining farms when the winter arrives. The Iranian government has stated that this activity causes numerous power outages, negatively affecting the heating systems of the country.
The same happened in May 2021, during the summer, when they restricted the operations of Bitcoin mining farms. They argued that electrical energy consumption increases the use of air conditioning due to the high temperatures in the territory.
The governments of other countries like Kosovo and Argentina have also blamed cryptocurrency mining for power outages. The authorities attribute the energy problems to that activity rather than the lack of investment in the electricity sector.
Concerning the authorities of Kosovo, they recently said that they cut the electricity supply to save energy for the population. They believe that the high energy consumption by cryptocurrency mining equipment could affect other sectors.
In Argentina, the government stated that cryptocurrency mining overloads and overheats the electricity networks amid a heatwave. They want to apply higher costs to the rates for farms doing the activity but would exempt users mining from home.
By Alexander Salazar
