The government of Iran has banned the mining of cryptocurrencies, Iran President Hassan Rouhani said this on Wednesday, as the country faces major power blackouts in many cities.
The ban was announced on Wednesday and it takes effect immediately, until September 22. This ban is amidst a growing unease over cryptos energy usage.
According to the president, he said "The ban on the mining of cryptocurrencies is effective immediately until September 22 ... Some 85% of the current mining in Iran is unlicensed,.”
The ban follows a regional ban placed on Bitcoin by China. Iranian officials are blaming a surge in mining for blackouts in their cities.
The Iranian government has been cracking down on the 85% of mining that is unlicensed. Subsidised power prices allow miners to run the complex computers that compete to solve mathematical problems and receive Bitcoin as a reward.
Bitcoin and other cryptocurrencies are created through a process known as mining, where powerful computers compete with each other to solve complex mathematical problems. The process is highly energy intensive, often relying on electricity generated by fossil fuels, which Iran is rich in.
The University of Cambridge estimates Iran was home to 3.4% of Bitcoin mining in the first four months of 2020, putting it in sixth place globally. Iran has 50 licensed mining centers, which are spread across 14 31 provinces and consume a combined 209 megawatts of electricity, grid operator Tavanir said in a statement on Wednesday, according to the semi-official Tasnim news agency.
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