July 25, 2024

Bitcoin Price Rises As Iranian Government Recognizes Crypto Mining

Bitcoin Price Rises As Iranian Government Recognizes Crypto Mining

Several factors such as improved Crypto-regulatory environment, economic sanctions, and high demand for foreign currency has seen Bitcoin Core (BTC) price in Iran hit $24,000. Immediately the government approved plans to recognize Bitcoin mining, the price of the leading Cryptocurrency skyrocketed. Iran has turned to digital currencies to circumvent the economic sanctions imposed by the America and its Western allies.

Bitcoin Core (BTC) Most Expensive In Iran

Cryptocurrency Core (BTC) has reached the world’s highest price in Iran after it hit $24,000 on the country’s exchange EXIR. The price of the leading digital currency has eclipsed its previous price of $20,000 recorded in December last year. The increase came after the President Hassan Rouhani’s government confirmed it would recognize Crypto mining as an industry.

The local currency, rial, has been experiencing a sharp decline in price against other foreign currencies such as the USD. Most of the investors in the country have turned to the virtual currency with the hope of protecting their investment against the falling local currency.

EXIR was active on Twitter announcing the beginning of Bitcoin bull market in Tehran. Reuters reported that while the official exchange rate between the local currency against the USD is about 42,000, on the streets, the currency is trading at about 138,000 against the dollar. This exceeds the official rate by about 230 percent.

Cryptocurrency Mining To Be Allowed In Iran

On Tuesday, Tehran officially announced that it will recognize Cryptocurrency mining in the next three weeks. According to the Secretary of Iran’s Supreme Council of Cyberspace Abolhassan Firouzabadi, the responsibility of drafting a policy framework for the new industry has been given to the Central Bank of Iran. Traditionally, the bank is in charge of the country’s monetary policy and foreign exchange.

Firouzabadi also said that the country has turned to Cryptocurrencies with the hope of facilitating trade with its allies. He told IBENA that such a move is crucial especially in the wake of economic sanctions imposed by the US and its allies on the Islamic country. IBENA is a news agency that mainly focusses on the economy and banking and is closely linked to the Central Bank of Iran.

High Demand For Cryptocurrencies In Iran

As more Iranians turn to the virtual currencies, the gap between the official BTC price and that on the street is becoming more pronounced. The difference demonstrates the inflationary pressure that has been fuelled by the US sanctions. Whereas Bitcoin was trading at around $7,017 on Coinmarketcap.com at press time, Iranians were buying the same digital asset at about $24,000, which is almost 240 percent above the global market price.

EXIR reported that in the last three weeks, the digital currency price has increased by about 40 percent. This indicates the Cryptocurrency price in the country is increasing at a higher rate than the global average. EXIR has attributed this increase in demand to the declining Rial prices, a change in the virtual currency policy, and speculation. It is difficult to tell for how the Cryptocurrency prices in the country will keep rising and only time will tell.

Iran now joins Venezuela in turning to Cryptocurrencies to circumvent economic sanctions. In February, the government of President Maduro introduced a virtual currency called Petro that is backed by oil. Some people are optimistic that the digital currency can replace fiat currency and enable countries to trade even more efficiently.

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