Page 43 - IRANRptSep22

Iran to trial crypto ATM at Kish Island airport
Authorities announce seizure of 9,400 illegal cryptocurrency mining devices in Tehran
"By the end of September, the use of cryptocurrencies and smart contracts will be widely used in foreign trade with target countries," an official from the Ministry of Industry, Mines and Trade, Alireza Peymanpak, wrote on Twitter. Last year, a study found that 4.5% of the world’s bitcoin mining was taking place in Iran, partly because of the country's cheap electricity, Reuters noted. Theoretically, the mining of cryptocurrency could pave the way to Iran earning hundreds of millions of dollars that can be utilised to purchase imports and reduce the effect of sanctions. However, Iran has also built up a track record of shutting down power-thirsty crypto mining operations at times when the country’s electricity grid becomes subject to major and recurring outages. Critics also point out that cryptocurrencies such as bitcoin are highly volatile. That makes them impractical when it comes to large-scale payments.
Central African Republic (CAR), one of the world's poorest countries, and El Salvador are among nations to have embraced crypto.
Iranian free trade zone (FTZ) authorities on the Persian Gulf resort island of Kish are expected to install a cryptocurrency ATM for foreigners at the island’s airport, Tehran’s Financial Tribune has reported, citing Way2Pay.ir.
As a country under heavy sanctions, Iran can be a difficult country to visit due to a lack of available ways to exchange money. Under the ATM plan, visitors to Kish will be able to use the facility to change cryptocurrencies into Iranian rial (IRR) cash on-site. Word of the ATM move came ahead of a report that Iran has placed its first official goods import order using a cryptocurrency.
The ATM scheme will trial four cryptocurrencies, namely Bitcoin, Ethereum, Tether and Tron.
The offer is reportedly not, however, being extended to Iranian nationals or Iranians with a second passport.
“We have been holding talks with the Central Bank of Iran and crypto exchanges... ATM devices have been delivered to us and will be installed across the Kish Island Free Trade Zone after regulatory issues are addressed,” Mehrdad Tavalti, spokesman for the Kish Island Hoteliers Association said, referring to the plans that could be realised if the airport trial is successful.
The 91.5-square-kilometre (35.3-square-mile) Kish Island is hoping to benefit from its proximity to Qatar as the Qataris in November and December host the 2022 FIFA World Cup football tournament. Officials have worked on plans to host football tourists and even some of the teams that have made the finals, easing the load on Qatari facilities.
“Restrictions on payments and transferring funds, due to US sanctions, is a main challenge and cryptocurrencies should be an appropriate solution,” Tavalti added.
Iranian authorities have announced the seizure of 9,404 illegal cryptocurrency mining devices in Tehran since the end of March, Radio Farda reported on August 22.
Some of the power-thirsty cryptomining units operating in Iran are reportedly based in locations such as schools and mosques that are provided with free electricity. The country in general enjoys relatively low electricity prices thanks to heavy subsidies. This has driven up the allure of mining cryptocurrencies. Kambiz Nazerian, head of Tehran Electricity Distribution Company, was quoted as saying that the mining devices were discovered by inspectors in different districts of the Iranian capital. Recent years have seen the Iranian authorities regularly announce the finding of illegal cryptocurrency mining devices in different parts of the country.
In crypto ‘mining’, Bitcoin and other cryptocurrencies are created by powerful
43 IRAN Country Report September 2022 www.intellinews.com