Iran Perfects New Electricity Tariff Scheme for Cryptocurrency Mining

July 22, 2019 9:58 AM UTC

 

Amid the recent crackdown of cryptocurrency miners and seizure of mining hardware by the Iranian government following a 7% surge in electricity consumption, the Iranian Economic Commission has currently perfected a tariff scheme for cryptocurrency miners as this was revealed in a report from a source on July 21.

According to the report, Iran’s Energy Minister Homayoon Ha’eri disclosed that the new tariff scheme has already been perfected and it awaits the approval from members of the Iranian Cabinet.

Ha’eri however, did not make further comments on the exact price to be charged in the new tariff scheme, but revealed that the price will be dependent on market factors such as the fuel prices in the Persian Gulf.

Ali Bakshi, the head of Iran Electrical Industry Syndicate was reported to have initially proposed a price of $0.07 per kilowatt hour for crypto mining. With the currency price for electricity standing at a subsidized rate of $0.05, Iran remains one of the cheapest locations for cryptocurrency mining which is subsequently being exploited by cryptocurrency miners.

A spokesman for Ministry of Energy (power department), Mostafa Rajabi Mashhadi, also disclosed that electricity consumed for the production of one Bitcoin uses as much as $1,400 in state subsidies. Corroborating the spokesman’s statement, the nation’s daily Financial Tribune, reported that the production of Bitcoin consumes electricity meant for 24 houses in Tehran annually.

The move to implement a new tariff scheme for cryptocurrency mining in Iran comes amid announcement from the Central Bank of Iran, which reportedly intends to authorize cryptocurrency mining in Iran.

 

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