In Iran, some recent government decisions allow the central bank to acquire bitcoins.

The issue is that of btc mining, since the country has started to grant licenses to mining farms, so much so that it has already exceeded a thousand licenses granted.

However, it is now discovered, thanks to the website of ISNA (Iranian Students‘ News Agency), that an amendment to this decision in fact requires the mining farms to provide the cryptocurrency extracted directly to the central bank of the country, through special channels identified by the latter.

The objective would be to use these cryptocurrencies as currency for imports.

In addition, the Ministry of Energy determines how many cryptocurrencies to extract and deliver, based on the amount of energy consumed.

This last point reveals, however, that the Iranian authorities have not yet well understood how mining works, especially bitcoin mining. In fact the amount of btc that can be extracted does not depend on a fixed relationship with the amount of energy used, but on the hashrate and the difficulty of Bitcoin, which in turn depend mainly on the selling price of btc.

So it is unlikely that Iranian mining farms can really respect the limits imposed by the Ministry of Energy, ending up to extract or not, or more btc than expected.

Why Iran requisitions bitcoin

In addition, although the argument in theory applies to all cryptocurrencies, even those that are easier to extract, the fact that the objective is actually to accumulate money that can be spent all over the world to pay for imports, in order to circumvent international sanctions, reveals that the interest of the central bank is most likely directed primarily to bitcoins and the most popular cryptocurrencies, such as ETH.

On the contrary, since the central bank will end up accumulating these resources, probably without selling them immediately, it is very likely that it is interested in accumulating and storing mainly bitcoins.

It should not be forgotten that sanctions, especially American ones, against those countries or companies that trade with Iran are heavy, so bitcoin could help the country to make purchases around the world freely by circumventing these sanctions.

On the contrary, given the considerable difficulty in spending dollars, the Iranian central bank would seem intent to no longer use the U.S. dollar as primary reserve, but the Chinese yuan. In this perspective, it might make even more sense to also hold some reserves in btc.