Blockchain

Iran all set to ban cryptocurrency payments

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Iranian lawmakers have drafted a bill titled “Support for cryptocurrency mining and organizing the domestic market for exchanges” which aims to prevent cryptocurrencies from being used on a mainstream commerce level.

If the bill becomes a law, the Central Bank of Iran will have the authority to oversee and regulate the flow of cryptocurrencies in the domestic market.

Many analysts predict that the reason why Iran has been making moves to plug the continuous flow of cryptocurrencies in Iran is to make way for its own digital currency, which could be a digital rial.

Highly regulated

While crypto miners in other countries enjoy a high degree of freedom in operating their crypto operations, miners in Iran are under a highly regulated environment.

But the country’s strict rules in crypto mining evolved into a full-fledged banning which was ordered by President Hassan Rouhani back in May to prevent the further surge of electricity consumption in the Islamic Republic.

The ban is scheduled to be lifted on September 22.

According to Rouhani, 85% of crypto mining operations in the country are unlicensed and illegal and consume more than 2 gigawatts of electricity daily.

More elbow room than China

While Iran bans the use of cryptocurrencies for payment transactions, the proposed bill would allow crypto miners to operate in the country and will be regulated by the Ministry of Industry, Mining, and Trade. They would also be authorized to sell surplus electricity generated by their power plants.

Certainly, cryptocurrencies would thrive in Iran because of its selective banning, which only focuses on payment transactions. China, on the other hand, completely drives away any crypto-related operations through its continuous crackdowns, giving zero hopes for crypto to ever thrive in the country.

 

Image courtesy of Cointelegraph News/YouTube

Jet Encila

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Jet Encila

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