Iran has issued a licence to the country’s largest mining company as it seeks to explore ways to alleviate U.S. restrictions on its economy by cryptocurrencies.
$7.3 million Mining Farm Licensed
The Middle East nation has accepted the mining license of iMiner, a Turkish firm. iMiner is designed to run up to 6,000 rigs and would have a cumulative processing capacity of about 96,000 terahash per second (TH/s).
Media reports from Iran indicate that this is the country’s biggest mining project, with iMiner spending around $7.3 million to set up the plant. The acceptance of this mining activity is a way for Iran to use Bitcoin and other cryptocurrencies to ease the burden of US economic sanctions.
Iran has issued a license to the country’s largest mining company as it seeks to explore ways to alleviate U.S. restrictions on its economy by cryptocurrencies.
iMiner, which has been running for almost seven years now, has extensive expertise in mining and investing in bitcoin mining of Bitcoin. iMiner, which runs the Aladdin range of cryptocurrency mining equipment, actually operates in five countries. The nations where it is lawfully working include Turkey, Russia, the United States, Canada, and Iran, with more than 300 employees across these countries.
Iran Opening up to Cryptocurrencies
Iran is becoming a favorite destination for cryptocurrency mining companies due to the country’s current economic climate. Miners from Ukraine, China, and other parts of the world are now flocking to Iran, thanks to cheap electricity from the Islamic state.
The Iranian Government, for its part, is drawn to Bitcoin for economic and political purposes. Their openness to Bitcoin is motivated mainly by a willingness to achieve financial independence and avoid the US government’s control.
Cryptocurrency mining was legally recognized as an economic operation last year. Previously, though, the Iranian government has become wary of cryptocurrencies, claiming that they had the power to circumvent the central authority in financial transactions. After the mining industry’s approval in Iran, the government has granted more than 1,000 cryptocurrency mining licenses in the region.
The Middle East country is also the third-largest oil producer globally and aims to use the potential of Bitcoin and other cryptocurrencies to circumvent U.S. economic sanctions. Such restrictions have also impacted foreign exchange and other economic operations of the country. At present, the U.S. dollar is the number one currency used in worldwide financial transactions. Although Bitcoin and other cryptocurrencies have a long way to go to move the U.S. dollar and other fiat currencies, countries such as Iran would give them the adoption of cryptocurrencies the necessary head start. Increasing numbers of people use Bitcoin and other cryptocurrencies to carry out transfers, both local and cross-border, because they make it more secure, simpler, and cheaper.
With economic sanctions already in force for Iran, it will be important to see more advances in cryptocurrencies in the Middle East. Such innovations are essentially beneficial for the growth of the cryptocurrency market.