Iran’s Energy Minister Proposes to Charge Electricity for Cryptocurrency Mining in Real Prices

June 10, 2019 By: Nwabundo Wisdom

 

Cryptocurrency mining in Iran may become expensive due to a proposed decision by Iran’s deputy energy minister, Homayoun Haeri, to charge crypto miners, electricity bill in real prices against government subsidy provided. This was disclosed on Sunday, June 9, by Iranian daily newspaper, The Financial Tribune.

The deputy energy minister according to the report, disclosed that electricity bills for crypto mining purposes should be charged in their real prices as the Iranian government reportedly spends $1 billion annually as subsidy for for supplying electricity to consumers, which includes crypto miners.

However, the Iranian government in a report in 2018, opened arms to crypto mining when major authorities which include— Ministry of Energy, The Central Bank and others— endorsed crypto mining as an industry.

The secretary of Iran’s Supreme Cyberspace Council also revealed that the National Cyberspace Centre was making plans to establish a regulatory framework for cryptocurrency mining in Iran. The National Cyberspace Centre also revealed that the Iranian president, Hassan Rouhani, gave a directive to launch its native cryptocurrency last year August 2018.

Nima Dehqan, a blockchain researcher stated that crypto miners are keen on mining cryptocurrency in Iran due to its cheap electricity charges which is valued below $0.01 per killowatt-hour. Dehqan also stated that the recent decision to charge electricity for crypto mining in real prices, is attributed a recent drop in the value of the Iranian rial, owing United States sanctions.

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