Iran has granted a license to the most significant mining operator in the country as it continues to look for ways to ease U.S sanctions on its economy via cryptocurrencies.
$7.3 Million Mining Farm Approved
The Middle East country has approved the mining license of iMiner, a Turkish-based company. iMiner is set to operate up to 6,000 rigs and will have a computing power of around 96,000 terahash per second (TH/s) in total.
The media reports coming out from Iran reveal that this is the biggest mining farm in the country, with iMiner spending around $7.3 million to set up the facility. The approval of this mining farm is a way for Iran to leverage Bitcoin and other cryptocurrencies to ease the impact of U.S economic sanctions.
The license, which was granted by the Iranian Ministry of Industry, Mine and Trade, also allows the Turkish-based miner to offer trading and custody services in the Middle Eastern nation. As a result, this would enable the company to venture into various aspects of the digital economy in a regulated environment.
iMiner, which has been around for roughly seven years now, has vast experience in Bitcoin mining and investing in the cryptocurrency mining sector. iMiner, which operates the Aladdin range of cryptocurrency mining machines, currently has operations in five countries. The countries iMiner legally operates in include Turkey, Russia, the U.S, Canada, and Iran, employing over 300 staff across those countries.
Iran Opening up to Cryptocurrencies
Iran is becoming a favored destination for cryptocurrency mining companies due to the current economic climate in the country. At the moment, miners from Ukraine, China, and other parts of the world are flocking to Iran, thanks to the Islamic state’s cheap electricity.
The Iranian government, on its part, is attracted to Bitcoin for economic and political reasons. Their openness towards Bitcoin is primarily driven by the desire to gain financial freedom and escape the reach of the United States government.
Last year, cryptocurrency mining became an officially recognized industrial activity. However, before that, the Iranian government had been suspicious of cryptocurrencies, as they believed they have the ability to bypass the central authority in financial transactions. Since the recognition of the mining industry in Iran, the government has issued more than a thousand cryptocurrency mining licenses in the country.
The Middle Eastern country, which is the third-largest oil producer in the world, is hoping to utilize the power of Bitcoin and other cryptocurrencies to circumvent U.S. economic sanctions. These sanctions have already affected the economy’s foreign exchange and other commercial activities.
At the moment, the U.S dollar remains the number one currency used in global financial transactions. While Bitcoin and other cryptocurrencies have a long way to go to displace the U.S dollar and other fiat currencies, the adoption of cryptos by countries such as Iran would give them the necessary head start. An increasing number of people are using Bitcoin and other cryptocurrencies to carry out transactions, both local and cross-border, as they make it more convenient, easier and they cost less.
With the economic sanctions still in place for Iran, it would be interesting to see further cryptocurrency development in the Middle Eastern country. In the end, these developments are good for the growth of the cryptocurrency sector.