Iran has had to face the US economic sanctions for several years. They are causing the country real trouble, especially with runaway inflation. The regime in Tehran is trying to get out of this very complicated context. The government recently turned to the cryptocurrency industry, according to analytics firm Blockchain Elliptic.
In addition, according to this study, 4.5% of the bitcoin mining in the world is done in Iran. Crypto would also be used to indirectly export its energy reserves. Elliptic says the project kept its promises so well that the country’s electrical infrastructure could even handle the increased stress from mining. From then on, President Hassan Rouhani even announced this week that this practice would be banned for the entire summer and until September 22nd to avoid power outages.
Experts also share the fact that Chinese mining companies have been drawn to the location where they moved some of their plants.
North Korea generates billions of dollars from cyber attacks
In detail, Iran in particular officially authorized cryptocurrency mining in 2019. Miners have to identify themselves and pay a slightly higher price for their electricity. The latter, however, would remain very modest. The bitcoins are then resold to the Iranian central bank. It is clear that Iran is transferring its energy assets indirectly via cryptocurrency.
Of course, this is not the first time countries in economic difficulty have resorted to technological solutions to circumvent the effects of sanctions. North Korea, for example, is known to launch numerous cyber attacks that are very profitable. In a report released in 2019, we learned that the country has accumulated more than $ 670 million in cryptocurrency since 2015.
Other studies have even found that the Kim Jong-un regime recovered more than two billion dollars from these operations. The problem is all the more serious since, according to UN experts, the money could be used to finance illegal programs of weapons of mass destruction and ballistic missiles.
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