The Iranian government's recent eye-catching decision has attracted global attention: approving power plants to mine Bitcoin. This move has not only made waves in the economic field, but also has a profound impact on the cryptocurrency market. Let's take a deep look at this exciting information and see what it means and what impact it may have.

This decision will also have a profound impact on Iran's economy. With the fluctuation of Bitcoin prices, mining activities will bring more foreign exchange income to Iran, which will help ease the current economic pressure. At the same time, Bitcoin mining will also promote local employment growth and inject new impetus into Iran's economic development.

From a global perspective, this move by the Iranian government will also have a certain impact on the cryptocurrency market. As an important Middle Eastern country, Iran's support for Bitcoin mining will attract more investors and miners to come, further promoting the development of the Bitcoin market. This also means that the expansion of the global Bitcoin network will inject new vitality into the field of digital currency.

In general, the Iranian government's move to approve power plants to mine Bitcoin not only reflects the government's open attitude towards emerging technologies, but also brings new opportunities for the country's economic development. This decision will have a profound impact on the economic landscape of Iran and even the world, and it is worth our close attention and discussion. I hope that this move by the Iranian government will be successful and contribute to the prosperity and development of the local economy.

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According to Iranian authorities, power plants can mine cryptocurrencies such as Bitcoin, but not with subsidies. Iran has announced that it will now allow the country’s industrial-scale power plants to operate as Bitcoin mines — provided they do not use subsidized fuel.

On July 27, Mostafa Rajabi
Mashhadi, deputy general manager of Iran’s power generation, transmission and distribution management company Tavanir, said in a statement to the Islamic Republic News Agency (IRNA) that the country’s power plants can operate as Bitcoin mines “if they comply with the corresponding tariffs” and have the necessary licenses.

Mashhadi said that any power plant considering such a venture must not use subsidized fuel for crypto mining.

“Now we are in a situation where the supply of electricity is very important for the public,”
the energy spokesman said. “We will not allow anyone to abuse the electricity prices provided for the agricultural and industrial sectors to produce Bitcoin, which is worth more than $9,000.”

About electricity

Since the government authorized crypto mining as an approved industrial activity in July 2019, Iran’s Ministry of Industry, Mine and Trade has issued 1,000 licenses for crypto mining, according to reports in January.

A spokesman for the power industry said that 14 crypto mining farms in Iran have applied for more than 300 megawatts (MW) of electricity—equivalent to the use of three provinces in the country, according to IRNA.

The electricity price scheme for Iranian crypto miners depends on market factors such as fuel prices in the Middle East. Mining requires a lot of electricity, but electricity in the country is very cheap compared to other parts of the world. Mashhadi estimated in 2019 that it only takes about $1,400 in state subsidies to produce one Bitcoin.

There is also a bounty of up to 100 million rials, or $2,375, for those who expose Iran’s illegally operating cryptocurrency mining companies.

This decision by the Iranian government is actually a support and encouragement for Bitcoin mining activities. Power plants can use excess electricity resources to mine Bitcoin, which not only helps to improve power utilization, but also creates more sources of income for the country. This innovative approach shows the Iranian government's open attitude in the field of digital currency and sets an example for other countries.

Bitcoin mining has always been a controversial topic because it is often criticized for its high energy consumption. However, this move by the Iranian government seems to provide a new idea for solving this problem. By using excess electricity from power plants for mining, it can not only improve resource utilization efficiency, but also bring more economic benefits to the country, which can be said to kill two birds with one stone.