Iran is one of the first countries to accept Bitcoin as a form of payment. The Central Bank of Iran (CBI) has announced that it will design a mechanism for bitcoin operations by working with the Ministry of Trade. This move is in response to US trade sanctions, which have had a negative impact on Iranian businesses. Bitcoin is still in its early stages and there are many challenges that need to be addressed, such as the lack of regulation and security concerns. However, Iran’s acceptance of Bitcoin shows that cryptocurrencies are here to stay and have potential in global markets. ..
Relationship Between Iran And Bitcoin:
First, Iran has been accused of being a major player in the illegal mining of Bitcoins. Second, Iran’s government has not been very supportive of Bitcoin and other cryptocurrencies. Finally, there is the issue of how Tehran will deal with the influx of new Bitcoin miners into the country.
Reason
The main reason behind the uneven production and trade of bitcoin is the country’s power sector which is already in a poor state of affairs due to subsidies given to consumers. In 2018 alone, illegal cryptocurrency mining farms robbed the power sector of 1500 Megawatts according to Iran International. Cities faced long power cuts amid sweltering heat. Therefore, a four-month-long ban was imposed on the mining of all cryptocurrencies from May to September. The ban was lifted as soon as the temperatures dropped but the same practice was repeated in 2020.
In 2021, a law was proposed in the Iranian Parliament to foster and nourish the Crypto trade without inducing a burden on the power sector. Parliamentarians want to reap the benefits of digital currency by investing it in trade. In light of this law, cheap loans were provided to the owners of Bitcoin mining farms for setting up their powerhouses.
Current Scenario
As of now, Iran has 50 legal farms that are mining Bitcoin according to the official number. However, the actual number is much higher than reported. Authorities have revealed that 80 percent of all the mining taking place in the country is illegitimate. In 2021, Tehran Police shut down more than 7000 mining computers as the power outages in major cities became frequent, pushing the authorities to impose another ban.
The government is providing licenses to farmers in order to increase the production of crops, but the inflow of Chinese money from investors seeking to benefit from these licenses is quickly saturating the industry. This has caused a decline in prices for crops and a decrease in the value of government-provided assets.
Future Of Bitcoin In Iran
According to reports, the Iranian government has announced that it will launch its own gold-backed digital currency, the Rial. This follows Supreme Leader Ali Khameini’s declaration that cryptocurrencies are in line with Islamic Shariah Laws. This would be a major boost for Iran’s economy, as reservations about their legality would diminish. However, the Central Bank of Iran has shown reservations about accepting other digital currencies. ..
Conclusion
Bitcoin is a popular currency in Iran, but due to slow regularization and controversies surrounding its legality, the adaptation has been sluggish. Despite these concerns, statistics show a rising interest in Bitcoin.
Bitcoin is a digital currency that can be used or transferred without any bank. It is managed by peer-to-peer bitcoin networks and is free of the influence of governments or other private entities. Bitcoin is registered in a blockchain ledger which is accessible to everyone in the digital realm. On the other hand, it is not yet accepted by governments around the world but Iran has recently jumped on the bandwagon. ..
Bitcoin can be bought or sold in Iran through a number of methods, including online exchanges and local currency dealers.
The main point of this article is that one can buy or sell cryptocurrency through exchangers in major cities where customers can buy or sell Bitcoin or any other cryptocurrency using the Iranian Rial. Another way is through Persian websites which deal in cryptocurrencies. All other websites such as Bitcoin.com, Jaaxx, Blockchain, and even exchange websites like Changelly show a huge informal trade volume from Persian websites.
The Iranian websites dealing in cryptocurrency such as Arzdigital show an increase in traffic even when Cointelegraph and Coindesk showed a decline in the number of visitors in 2017. This is likely due to the increasing popularity of cryptocurrencies and their potential for circumventing government censorship and financial restrictions.
There are a few platforms that are considered to be reliable when it comes to dealing with Bitcoin in Iran. These include Coinbase, Bitstamp, and Kraken.
Some of the most popular cryptocurrency exchanges are Changelly, Arzdigital, etoro, Kraken and Coinbase. These platforms allow users to buy and sell cryptocurrencies easily and securely. ..
