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Iran reacts to news of China's crypto currency mining

Finance Materials 18 July 2019 13:47 (UTC +04:00)

Tehran, Iran, July 18

Trend:

Iran's Minister of Communications and Information Technology (ICT) Javad Azari Jahromi has commented on the news of Iran issuing permit for Chinese to organize crypto currency mining in the country.

"I haven't read the news on this, but there have been discussions on the mining of crypto currency," Jahromi told Trend on the sidelines of the 25th Iran International Electronic, Computer & E-Commerce Exhibition.

"We have expressed our views towards mining of digital currency. We've also talked about sharing, exporting cyber power, and this is where Bitcoin mining comes in, and it can create revenues," he said.

"The government has discussed two conditions for mining digital currency, naturally it relates to Energy Ministry not the ICT," said.

Jahromi went on to explain the mentioned conditions.

"The first condition is that electricity used in mining can not be part of power distribution network that consumes the energy and network capacity. So, if there is a farm it should be next to a power plant and identified by the Energy Ministry, and the second condition is that the power rate for this purpose should be considerable," he said.

"We pay high for power production, from the water behind the dams to other costs," he indicated.

"If the conditions are considered and the Energy Ministry makes decision on the issue, using power network for productive technology will increase," he added.

Iran had formally recognized mining as an industry in 2018, but concerns about power consumption still created obstacles for crypto currencies.

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