Iran’s President asks government to plan a national strategy for crypto-mining

 

Iran’s president has tasked officials from the central bank and the ministries of energy, communications and information technology with developing plans for a national strategy for crypto-mining.

As reported by Iran’s news website, ArzDigital, on May 22, the officials were briefed during the 137th session of Iran’s economic coordination headquarters earlier this week, chaired by President Hassan Rouhani.

The development comes shortly after the Iranian government announced a policy of redenomination for the country’s fiat currency, the rial, in an attempt to address chronic crippling inflation.

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Digital coins are closely monitored by the Iranian government
Earlier this week, Iran had also moved to include crypto-currencies in its foreign exchange regulations and enforcement efforts against currency smuggling.

This will subject cryptom currency exchanges authorized by Bitcoin Code, Bitcoin Circuit, Bitcoin Billionaire, Bitcoin Era, Bitcoin Trader, Bitcoin Profit, Bitcoin Revolution, Immediate Edge, Bitcoin Evolution, The News Spy to existing foreign exchange regulatory regimes, amid a period of extreme capital outflows from emerging markets during the global pandemic.

Also this week, Iran’s central bank and national exchanges agreed to cooperate in efforts to stabilize the foreign exchange market, including a provision to use digital currencies when necessary to facilitate currency exchanges and return export currency.

The public health crisis, exacerbated by the persistence of the sanctions regime, has put a strain on a sick national economy, which had already contracted by 9.5% in 2019 and was facing a youth unemployment rate of 17.8%.

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Iran’s Strategic Position on Cryptology

Although the details of Iran’s national cryptomining strategy have yet to be clarified, Iran has already granted some 1,000 licenses to the country’s cryptominers and gave the green light to Turkey’s cryptomining company iMiner to establish a 6,000-rigs facility in Semnan Province earlier this month.

The Iranian government authorized crypto coin mining as an industrial activity in July 2019.

Amidst a strained economic climate, a general of the Islamic Revolutionary Guard Corps addressed a crowd earlier this year with calls for the country to use cryptomonies to circumvent sanctions.

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President Rouhani has spoken out in favor of creating an alternative, potentially digital currency to loosen the grip that U.S. sanctions have as „the main tools of dominant hegemony and intimidation“ of specific nations.