Bitcoin, In Particular, Could Help Circumvent Sanctions on Iran – The Report

The Iranian Presidential Center for Strategic Studies, an Iranian thin tank has given a report calling for the country to adopt cryptocurrency mining saying it would help the country sail through the tough economic times caused by the COVID-19 pandemic and the tough international sanctions following its row with the USA over the JPOA nuclear deal. The think tank is said to be associated with the country’s supreme leader.

According to the think tank’s report, different sectors could benefit from extracting cryptocurrencies. It says that the government could generate as much as US$2 million a day, which translates to $700 million a year through direct revenue from cryptocurrencies if it intervened seriously on the matter. The report also claims that the revenue from receiving payments in Bitcoin could be about $22 million a year.

Further still, the creation of more mining facilities in Iran could lead to job creation since the mining companies would require employees.

According to the authors of the report,

 “If large mining farms are established, the need to employ manpower for monitoring and repair, security, electrical engineers, and technical staff related to hardware and software equipment will increase, which leads to more job opportunities in other sectors”

The other notable claim by the think tank through the report is that the mined Bitcoins would assist the country to circumvent the sanctions leveled against Iran.

 “As the newly-extracted bitcoins are not easily traceable, despite the pressure of sanctions on the country, domestic economic actors can use newly-extracted cryptocurrencies, which are preferable to existing bitcoins, on international exchanges.”

It is important to note that the report comes amid heightened efforts by the Iranian government to try and make cryptocurrencies a source of income for the Islamic state while also leading an onslaught against independent ‘illegal’ miners.