Cryptocurrency mining helps Iran avoid sanctions

Cryptocurrency mining helps Iran avoid sanctions

Research Center issued Iranian Linked to the office of President Hassan Rouhani, a report calls on the nation to mine cryptocurrency in order to help the economy amidst severe international sanctions.

and say report Iran’s Presidential Center for Strategic Studies: Cryptocurrency mining could provide economic benefits to several different sectors of the turbulent economy.

The report stresses the need for the system to use cryptocurrencies to generate additional income, explaining that if the government intervenes seriously, it may generate $ 2 million a day and $ 700 million a year in direct revenues from cryptocurrencies.

While the revenue from Bitcoin network transaction fees could generate $ 22 million annually for the Iranian government.

The report also states that the establishment of more Bitcoin mining facilities in Iran leads to an increase in employment, and adds that cryptocurrency miners also have a basic need for electricity, and for every megawatt of electricity consumption, about nine people work directly.

If large mining farms are established, the authors write, the need to employ the workforce for monitoring, repair and security, electrical engineers and technical personnel associated with hardware and software equipment increases, leading to more employment opportunities in other sectors.

Meanwhile, the report notes that organized cryptocurrency activity in Iran may also help prevent foreign currencies from leaving the country by reducing the need for people to purchase digital currencies, and alternatively, cryptocurrencies can be purchased using riyals within the country.

The report also indicates Bitcoin’s ability to circumvent the sanctions imposed on Iran, and the authors say: Given that newly mined Bitcoins cannot be easily tracked, despite the pressure of sanctions imposed on the state, local economic actors can use the newly mined cryptocurrencies, which It is preferred over current Bitcoin currencies, on international exchanges.

The report recommends that the government adopt a flexible approach in dealing with cryptocurrencies, enabling mass mining in Iran, establishing mining complexes next to power stations where possible, and adopting a one-size-fits-all policy for cryptocurrencies.

Iran has recently been trying to make cryptocurrency mining a source of income for the state, while taking strict measures against the independent miners it holds responsible for the power outages.

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