Iran plans use of cryptocurrency to ease sanctions

Published September 17, 2021
Representations of the virtual currency Bitcoin stand on a motherboard in this picture illustration taken May 20. — Reuters
Representations of the virtual currency Bitcoin stand on a motherboard in this picture illustration taken May 20. — Reuters

TEHRAN: An Iranian official has suggested that cryptocurrencies could be used to overcome problems related to international sanctions imposed on the Islamic republic.

“We cannot remain indifferent to the phenomenon” of cryptocurrencies, Gholamreza Marhaba, spokesman of the economic commission at Iran’s parliament, said.

“The transfer of money through cryptocurrencies could be a means to circumvent sanctions and ease their effects” on the economy, he said according to the official ISNA news agency.

He was speaking as parliament discussed a report outlining the size of the cryptocurrency market in Iran and how best to use the technology. Around 700 bitcoins are traded daily in Iran, according to the report.

Likewise, the report said, 19,500 bitcoins are mined annually in Iran, compared with 324,000 around the world. “Good management of cryptocurrencies could created opportunities for (Iran’s) economy,” Marhaba said.

Iran was among the first countries in the world to legalise the mining of bitcoins and other cryptocurrencies in September 2018.

But in May, then president Hassan Rouhani announced a four-month ban on all cryptocurrency mining after nationwide power cuts.

Profitably creating, or mining, bitcoin and other cryptocurrencies requires masses of computers dedicated to solving deliberately complicated equations — an endeavour that globally consumes more electricity than entire nations.

Published in Dawn, September 17th, 2021

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Kurram atrocity
Updated 22 Nov, 2024

Kurram atrocity

It would be a monumental mistake for the state to continue ignoring the violence in Kurram.
Persistent grip
22 Nov, 2024

Persistent grip

An audit of polio funds at federal and provincial levels is sorely needed, with obstacles hindering eradication efforts targeted.
Green transport
22 Nov, 2024

Green transport

THE government has taken a commendable step by announcing a New Energy Vehicle policy aiming to ensure that by 2030,...
Military option
Updated 21 Nov, 2024

Military option

While restoring peace is essential, addressing Balochistan’s socioeconomic deprivation is equally important.
HIV/AIDS disaster
21 Nov, 2024

HIV/AIDS disaster

A TORTUROUS sense of déjà vu is attached to the latest health fiasco at Multan’s Nishtar Hospital. The largest...
Dubious pardon
21 Nov, 2024

Dubious pardon

IT is disturbing how a crime as grave as custodial death has culminated in an out-of-court ‘settlement’. The...