When will we see a US embargo against Bitcoin? – The revenues from mining Bitcoin and cryptocurrencies in Iran amount to hundreds of billions of dollars and allow it to sell its oil in an innovative way. Faced with this news, thes Will the United States remain on the sidelines?
Bitcoin, the loophole of the Western embargo
According to report published by Elliptic on his blog, May 21, theIran would weigh, by itself, 4.5% of BTC mining operations in the world. Thus, this unique sector would bring hundreds of billions of dollars in the state.
These revenues allow Iran to face the embargo economic imposed by the United States. To tell the truth, the country is facing sanctions including “A ban on all Iranian imports and sanctions against Iranian financial institutions”.
According to the Elliptic article, these blockages are at the origin of a 70% drop in exports oil in Iran over the past decade. They dived “The country in a deep recession with galloping unemployment and periods of civil unrest”.
A Bitcoin proxy sale of oil
Minors operating in Iran benefit from a relatively cheap electricity, thanks to the availability of a abundant oil sold at lower prices in local markets. Therefore, foreign mining companies that collaborate with the Iranian military have now a strategic role for the country.
According to Elliptic’s article:
“(…) Several Chinese companies have obtained mining licenses and established operations in the country. These companies described having established good relations with the ‘army in Iran’, and a particularly important facility in Rafsanjan Special Economic Zone was built in collaboration with a “military organization” “
Bitcoin mining operations are therefore now a new form of valuation Iranian oil by proxy. The country’s authorities, however, have a nuanced relationship with BTC. In January 2021, they had already accused illegal miners in the territory of being responsible for the frequent power outages in the country – which would be due to an outdated electricity network, according to experts. Result: theIranian intelligence agency is even responsible for hunt down illegal mining farms.
So far, Tehran still refuses to sell its oil in dollars, enough to attract Washington’s wrath. True, in April 2021, the Iranian central bank had already announced that banks and exchange bureaus could use cryptos to pay for imports. However, Iran wants to establish a protectionist policy regarding cryptocurrencies, by requiring that bitcoins traded in the country be mined there. Decidedly, Satoshi Nakamoto put in the hands of countries hostile to the United States, a currency of mass destruction (MDM) against the greenback.