According to Iran’s Minister of Economy and Finance, new technologies including blockchain and cryptocurrency mining have helped Iran increase its budget revenue and withstand foreign sanctions. The senior official believes that the government cannot intervene in their development for too long.

The government’s official warning against obstructing the development of cryptocurrency

Iran’s Minister of Economic Affairs and Finance, Farhad Dejpasand, recently stated that in the past few years, Tehran has come closer to meeting its income tax targets. He revealed that the implementation of new technologies accounted for about one-third of the budget revenue growth. When commenting on the data, Dejpasand elaborated:

In the next four years, blockchain will account for 10% of global GDP. With the increase in electricity consumption, we have restricted the mining of cryptocurrencies, but in the long run, we cannot hinder technological development.

The Minister of Economy is referring to the seasonal ban on cryptocurrency mining in the country’s power shortage. Due to high cryptocurrency prices and access to cheap energy, digital coin minting has flourished in Iran. But the government blamed the frequent power outages in many cities on excessive power usage and this year’s drought. Authorities estimate that licensed and illegal miners burn a total of approximately 2,300 megawatts per day.

New technology helps Iran resist U.S. sanctions

Farhad Dejpasand also emphasized the importance of e-commerce to the country’s economy when speaking at the event to unveil two e-commerce projects. Earlier this week, the Tehran Times quoted the minister as saying that the share of e-commerce in the gross domestic product (GDP) of the Islamic Republic has increased by 2.4 times.

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According to data from the Iranian E-commerce Development Center, between March 20 and September 21, 2020, online trade transactions increased four times over the same period last year. At the same time, the number of newly issued online business licenses has tripled as traditional companies are trying to expand to online sales to adapt to the changing shopping habits of Iranians.

Iranian Minister stated that the government cannot hinder the development of encryption technology

Dejpasand emphasized that by adopting all these new technologies, Iran has largely successfully resisted the economic sanctions imposed by the United States. They also support Iran’s capital market indicators and have contributed to the fight against the coronavirus pandemic.

Recognizing the potential benefits of using cryptocurrency to circumvent trade barriers, Iran authorizes local banks and exchanges to use cryptocurrency mined in the country to pay for imports. However, the regulator’s attempts to curb other types of transactions prompted the Iranian fintech industry to warn that restrictions would only deprive the country of opportunities. The startup pointed out that cryptocurrency helps Iranian companies bypass the blockade on banking, shipping, and insurance services.

Do you think the Iranian authorities will allow encryption technology to develop freely in the country? Share your thoughts on this topic in the comments section below.

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