Iran to Introduce customized Tariff plans for Crypto Miners

Iran has previously had issues with the use of electricity by cryptocurrency miners in the past as a lot of the electricity being used was taken from the National Grid and was a means for crypto miners to take advantage of the country’s subsidized energy prices. A government official had previously stated that miners would be cut off from the National Grid with time but it seems the country has found a solution for the situation.

It has been reported on July 21, 2019, that the Iranian Economic Commission has been able to finalize a tariff scheme for crypto miners and this will help put an end to the conflict between the miners and the national energy provider.

Middle Ground has Been Found

According to the published report, the energy minister Homayoon Ha’eri has stated that the tariff scheme has been approved but is still waiting for approval from the cabinet of Iran. It also has not been stated the exact price that the scheme will enforce but the minister did say that it will be dependent on several market factors such as the prices of fuel in the Persian Gulf.

However, the head of the Iran electrical industry syndicate Ali Bakshi had previously suggested that a price of $0.07 per kilowatt-hour for crypto miners would be an appropriate price and this is quite close to the $0.05 per kilowatt-hour that is available to most of the public as electricity in Iran is relatively cheap due to several government subsidies and this price is even lower in Agricultural and industrial sectors.

Actions such as this has the benefit in that it will help crypto miners within Iran mine their tokens for significantly less than it would cost in other countries and this can help create some level of employment as well as stimulate the economy as the production of a single unit of Bitcoin in Iran costs $1,400 according to the energy ministry spokesman for the power department Mostafa Rajabi Mashhadi. It also shows that cryptocurrency is being much more normalized across the world as crypto miners have been seen as an outlier and were not given many provisions under the law in certain countries but with this new development, it is recognized that they are a significant part of the energy-consuming population and by being given their own prices, they can exist properly in the Iranian economy.