Iran bans cryptocurrency mining for four months

Iran has announced a four-month ban on the energy-consuming mining of cryptocurrencies such as Bitcoin after cities suffered unplanned blackouts.

President Hassan Rouhani has said that the ban would last until September 22nd.

As being reported, President Hassan Rouhani told a cabinet meeting the main cause of the blackouts was a drought that had affected hydroelectric power generation.

“Now everybody has a few miners laying around and are producing Bitcoins,” he told a televised cabinet meeting.

He added that the cryptocurrency mining, 85% of which is unlicensed, was draining more than 2GW from the grid each day.

According to a statement made by the Iranian President’s Office via state television news, amid government concerns over high levels of energy usage and worries of blackouts during the summer season.

According to a BBC report, Iran operates a program where Bitcoin miners must register with the government, pay extra for electricity, and sell their coins to the central bank.

What is Cryptocurrency mining?

Cryptocurrency mining is the process in which banks of powerful energy-hogging computers known as “rigs” race to verify transactions in exchange for new tokens.

The practice cryptocurrency mining of tends to be highly lucrative.

 However, in Iran and many other countries, the impact on power grids and the carbon footprint of Bitcoin mining, in particular, has drawn a strong backlash.