Cryptocurrency miners in Iran could witness spike in electricity bills if Iran’s Energy Minister gets his way.
The Financial Tribune reported on June 9 that minister Homayoun Haeri wanted the energy used by cryptocurrency miners in the country to be charged at real prices and not be subsidized by the government.
The government of Iran spends roughly $1 billion in electricity subsidies in the nation with Iranian households shouldering just a portion of the real cost of the energy usage.
Iran authorities forbid the trading and mining of cryptocurrencies. However, such activities still thrive because of the low energy costs in the nation.
U.S. sanctions on Iran have even attracted more people in the country to mine and trade cryptocurrencies as a substitute to fiat currency.
Nima Dehqan, a blockchain researcher at Tehran-based crypto startup Areatak, said in previous reports that foreign investors from Ukraine, Spain, France, and Armenia have visited their cryptocurrency farms in Iran. Dehqan stated that his company has already inked a partnership with a Spanish investor to build a mining farm in Iran.
According to Dehqan, foreign cryptocurrency investors are drawn to facilitate farming in Iran because of cheap electricity, which costs below $0.01 per kilowatt-hour. Furthermore, the recent decrease in Iranian’s real value due to sanctions imposed by the U.S. added to Iran’s appeal to cryptocurrency miners.