The government measure has already taken effect and will keep on running until September 22. The country blames the miners and the drought for the constant power outages.
The government of Iran banned Bitcoin (BTC) mining for a while due to the constant power outages the Persian nation has experienced in recent weeks. During a televised address today, May 26, President Hassan Rouhani reported that the measure came into effect and will last until late September.
For at least four months the miners of bitcoin and other cryptocurrencies will have to stop their operations. According to government authorities, digital mining, which provides security to the network and allows validation of transactions, is affecting the national electricity system, and having an impact on the Persian nation.
According to Reuters, President Rouhani said in the meeting with his cabinet that the cryptocurrency mining ban comes into effect immediately and it will last until September 22. Around 85% of current mining in Iran has not been licensed.
Although the government is directly targeting Bitcoin mining as the protagonist of the electric impact, the energy deficit would also be a consequence of the prolonged drought in the country and the increase in energy demand due to the summer. The instability that the electric system is currently showing has been questioned by the inhabitants, so the government has taken note of the discomfort, especially because of the approaching presidential elections.
It is not clear if the measure is extendable or if there is any kind of financial compensation with the miners. The stoppage of mining farms could represent a decrease in the country’s income since miners must sell cryptocurrencies to the central bank to finance imports, as reported by CriptoNoticias.
Bitcoin Mining amid Controversy
Iran’s decision comes right after the government took into account that Bitcoin mining is being targeted for the use of large amounts of electrical energy. China is also restricting activity and has issued new guidelines to minimize the work of miners, a significant fact if one takes into account that the Asian giant concentrates the greatest processing power of the Bitcoin network.
Electric vehicle maker Tesla also recently announced, through its CEO, Elon Musk, that it was no longer accepting BTC as a payment method due to high amounts of polluting emissions produced by digital mining through its Proof of Work (Proof of Work consensus protocol). PoW).
Multiple studies from many countries have shown that most of the energy used to mine bitcoins comes from renewable sources. But, on a global scale, initiatives are also being born that intend to advocate bitcoin mining through cleaner and more environmentally friendly mining.
By: Jenson Nuñez
