Iran Gives A Go Ahead to The Biggest Bitcoin Mining Facility, Ditches Rial Amid Hyperinflation

Turkey-based Bitcoin mining firm iMiner has been given the recent approval by Iran’s Ministry of Industry, Mine and Trade to establish a Bitcoin mining facility with 6000 mining rigs in the Semnan city.

This is Iran’s biggest crypto mining operation till date as iMiner has reportedly spent nearly $7.3 million (311 billion rials) so far. A last week’s report from local news source Tabnak News says that the Ministry has also permitted iMiner to start offering cryptocurrency trading and custody from within the country.

iMiner is already having its footprint in the Iran’s crypto market and is on its way to establishing the largest mining system in the country. The Turkey-based mining firm has already installed 2000 mining machines on its local site. Besides, it has some additional operations in the U.S., Canada, Russia, and Turkey.

The low subsidized power rates in Iran have attracted big players to establish their mining facilities in the country. Moreover, the interest for Bitcoin mining in Iran is on a steep rise since the country’s economy has become absolutely fragile with hyperinflation.

Last year in July 2019, Iran’s cabinet introduced a legislation giving an official status to the crypto mining industry. Since then, the mining industry has been actively regulating the space and have issued around 1000 licenses to local operators in January this year.

Iran has been currently going through the pressure of heavy economic sanctions put by the United States. As a result, the country’s economy has been on a tailspin with the value of Rial collapsing massively over the last year.

On the other hand, recent crisis with the Coronavirus pandemic and oil market collapse have given fresh blows to the country. Hyperinflation has taken the tall on the country as Iran looks out way to circumvent this economic sanctions. Thus, it might be one of the reasons for the country to legalize bitcoin mining facilities.

Another report from Mehr News on Tuesday, May 4 says that the Iran parliament has passed a new law dubbed‘ Reforming Monetary and Banking Law’. The new law talks about transitioning from Rial to a new currency dubbed Toman valued at 10,000 rials each.

As more and more Iranians rush to protect their cash, Bitcoin is trading at a massive premier of $34,500 on