Cryptocurrency mining is not to blame for Iran's power cuts - official

Business Materials 25 May 2021 09:21 (UTC +04:00)
Cryptocurrency mining is not to blame for Iran's power cuts - official

TEHRAN, Iran, May.25


Cryptocurrency mining should not be blamed for the power consumption issues in the country, said the head of Iran and China Chamber of Commerce.

Even if the number of illegal cryptocurrency miners are twice more than legitimate ones yet their consumption is equal to 1 percent of the country's power consumption while there are the false claims of a 20 percent deficit in power consumption (due to mining), said Majid Reza Hariri, Trend reports citing ILNA.

The official statistics released by the Ministry of Industry, Mine and Trade and Ministry of Energy indicate that all permitted investors in cryptocurrency, consume 300-megawatt electricity which is 0.05 percent of the country's total power consumption.

"Not all these miners are Chinese, there are domestic miners while other countries are also active. The share of China in cryptocurrency mining is less than half a percent, in addition to this due to power cuts in these days all mining devices were shut down," he added.

"Investment in the field of power has been reduced to less than half in past ten days; we could not equip and optimize our power plants or build new power plants that are part of the investment," he stressed.

"Major part of electricity in the country is being consumed by industries that produce cement, steel and petrochemical products, while industries sell their products based on international prices yet they consume energy with a low rate," Hariri noted.