When Bitcoin was introduced 10 years ago, many countries and economists were understandably wary. First of all, it was created by an anonymous person. Secondly, it is a digital currency with no regulations. But most importantly, it was a new concept that threatened the old order.
At first, they chose to ignore it. But Bitcoin started to grow in values and altcoins were created. Countries began to rightly fear that if there was no regulation in the usage of crypto, there will be unpleasant consequences.
However, instead of starting a conversation with crypto enthusiasts to seek ways of nationwide acceptance and regulation, some countries chose to restrict it while others outrightly placed a ban on it. Thankfully, that did not stop the growth of crypto nor its increasing acceptance.
Today, Bitcoin has defied the odds and is trading above $12,000. Increasing trade war tensions is causing a global fall in the value of hard fiat. And countries are beginning to see the advantage of crypto.
Among them is Iran which recently legalized cryptocurrency mining, but with conditions.
Iran has now allowed cryptocurrency mining in the country, but with the condition that potential miners apply for an obtain a permit from the Ministry of Industry, Mine and Trade. In addition, the electricity they would be using would be charged at the average price the country adopts for the one it exports to other countries. Miners cannot use electricity during peak consumption times, and cryptocurrency will not be used as a means of payment within the country.
While there is still more to be done to ensure that miners do not have to pay so much and that cryptocurrency is adapted for local use, this is an important first step. Hopefully, the Iranian government will see that crypto poses no harm to the country’s currency and will relax some of the restrictions currently around it.