The president of the Company of Generation, Transmission and Distribution Electrical of Iran (TAVANIR), announced yesterday that the electricity generation plants are permitted to engage in mining cryptocurrencies. This announcement is part of a series of policies driven by the government of Iran to promote the use of the cryptocurrencies in this country.
The low cost of electricity seems to be the factor more attractive for miners in Iran. As far as is known, the cost price of kilowatt hour (kWh) is between us $ 0.01 and to 0.05, being one of the more low-level world.
The low price of electricity led to the emergence of plants from the mining operating without authorization. The recent national strategy seeks to regularizarlas.
Mostafa Rajabi Mashhadi, president of TAVANIR, announced that the generation plants must request authorization from the Ministry of Industry, Mines and Trade to start trading. Once authorised, must comply with the rates imposed by the State, which currently are set at 0.07 USD/kWh, which is still a pretty competitive price.
The only challenge is that during the summer (a season of higher temperatures), electricity increases its price by up to 4 times. As an incentive, TAVANIR indicates that it will reduce by 47% the electricity tariff for the miners during this period. This would be one of the benefits that would accrue to miners to register their activities with the State.
The granting of licenses has maintained a steady pace so far this year. At the beginning of 2020, Breaking News reported the issuance of over 1000 licenses of mining in Iran. In the mid of the month of July, the State Iranian announced the delivery of permits to 14 plants of mining, each with an installed capacity of 300 MW.
All of these movements in favor of the ecosystem crypto, they start to look months after the iranian president will stress the idea of a criptomoneda for trade between muslim nations. A criptomoneda that allowed the muslims to leave the domain of the u.s. dollar.
iran is not the only country that has considered the cryptocurrencies how a financing alternative before the international sanctions. It is also the case of Venezuela, where from 2017, we began a process for the regularization of the miners who were in its territory.
Iran shares with Venezuela the low price of electricity. This is one of the variables that most take into account the miners at the time of deciding where to locate their operations. However, it is also necessary to ensure the availability of the energy resource and the security of investments, and Venezuela is not particularly reliable in those two aspects.