Iran legally recognizes the cryptocurrencies industry

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Iran legally recognizes the cryptocurrencies industry

The Head of the Economic Commission of Iran announced  to the  Mehr News Agency that the government now officially recognizes the cryptocurrency industry. Apparently, with a primary motivation to ease the weight of the sanctions imposed by the US. UU. The news comes in parallel with what the government sets the energy rates for cryptocurrency mining, indicating a desire to foster a crypto-economy in Iran. This according to a report   from the Chamber of Commerce, Industries, Mines and Agriculture of  Iran (ICCIMA), July 22, 2019.

It’s official

Over the years, Iran’s trip to cryptography is one of the least expected, especially given the country’s tough stance against the Bitcoin trade in early 2018 , which was propagated by the Central Bank of Iran (CBI) ; At this time, the CBI had ordered other banks in the nation to cease any activity related to crypto transactions. Although shortly after, the government began experimenting with its own local cryptocurrency.

Since then, Iran has slowly adapted to technology, with the citizens of Iran pouring billions into Bitcoin and a growing discussion around the use of cryptocurrencies as a means to bypass  US economic sanctions. UU.

However, the last drop was when the US government. UU. It forced the Swift banking network to disrupt trade with more than 70 Iranian banks, which opens up opportunities for blockchain / crypto companies like Ripple to come to collaborate with cross-border remittance payments and transactions. Now it seems that Iran has a clear and productive direction in which it wants to take the technology, which could become something quite spectacular throughout the region.

Elyas Hazrati, head of the Economic Commission in the Iranian Parliament, said the government’s intentions are moving forward. Speaking quite confidently after a meeting with officials with ICT officials, the Ministry of Finance and the passive defense organization, Hazrati stated:

“… WE BELIEVE THAT THE CRYPTOCURRENCY INDUSTRY MUST BE RECOGNIZED AS AN OFFICIAL INDUSTRY IN IRAN SO THAT THE COUNTRY CAN TAKE ADVANTAGE OF ITS TAX AND CUSTOMS REVENUES.”

The price of power

The announcement arises from the back of another encryption decision, namely, in relation to electricity rates for cryptocurrency miners. According to IICIMA reports, Iran’s economic commission has given the green light to a “mechanism to undermine cryptocurrencies,” as declared  by IWC governor Abdolnaser Hemmati.

In this regard, the government allegedly decided to set the price of electricity rates for cryptocurrency mining as well as the prices of exported electricity. Hazrati said that “prices are decided to be equal to the prices of exported electricity”

Reportedly, it costs 2 cents to generate and transmit a kilowatt-hour (kWh), which is sold at a rate of 0.7 cents per kWh

Although these plans have not yet been voted on by government ministers, Hazrati, with one plan in mind, said:

«BY GENERATING ELECTRICITY AT LOW COST, WE CAN PROVIDE THE ENERGY REQUIRED FOR DIGITAL MONEY MINERS IN THE COUNTRY»,

Adding:

«THE INCOME OBTAINED CAN BE USED TO BUY CURRENCIES UNDER US SANCTIONS. UU. TO ELIMINATE THE DIFFICULTIES WE FACE ».

For Iran, Bitcoin is an unknown technology that has served as an observable prototype, and proof that digital currencies are a viable means of ensuring economic sovereignty. Like Venezuela, where citizens are avoiding hyperinflation and the government with cryptocurrencies, Iran is trying to undermine the US. UU., What, in any case, is an extremely bold movement that could give good results.

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