Iran’s capital and major cities plunged into darkness in recent weeks as rolling outages left millions without electricity for hours. Traffic lights died. Offices went dark. Online classes stopped.
With toxic smog blanketing Tehran skies and the country buckling under the pandemic and other mounting crises, social media has been rife with speculation. Soon, fingers pointed at an unlikely culprit: Bitcoin.
Within days, as frustration spread among residents, the government launched a wide-ranging crackdown on Bitcoin processing centers, which require immense amounts of electricity to power their specialized computers and to keep them cool — a burden on Iran’s power grid.
Authorities shuttered 1,600 centers across the country, including, for the first time, those legally authorized to operate. As the latest in a series of conflicting government moves, the clampdown stirred confusion in the crypto industry — and suspicion that Bitcoin had become a useful scapegoat for the nation’s deeper-rooted problems.
Since the US unilaterally withdrew in 2018 from Tehran’s nuclear accord with world powers and re-imposed sanctions on Iran, cryptocurrency has surged in popularity in the Islamic Republic.
For Iran, anonymous online transactions made in cryptocurrencies allow individuals and companies to bypass banking sanctions that have crippled the economy. Bitcoin offers an alternative to cash printed by sovereign governments and central banks — and in the case of Iran and other countries under sanctions like Venezuela, a more stable place to park money than the local currency.
“Iranians understand the value of such a borderless network much more than others because we can’t access any kind of global payment networks,” said Ziya Sadr, a Tehran-based Bitcoin expert. “Bitcoin shines here.”
Iran’s generously subsidized electricity has put the country on the crypto-mining map, given the operation’s enormous electricity consumption. Electricity goes for around 4 cents per kilowatt-hour in Iran, compared to an average of 13 cents in the United States.
Iran is among the top 10 countries with the most Bitcoin mining capacity in the world — 450 megawatts a day. The US network has a daily capacity of more than 1,100 megawatts.
On Tehran’s outskirts and across Iran’s south and northwest, windowless warehouses hum with heavy industrial machinery and rows of computers that crunch highly complex algorithms to verify transactions. The transactions, called blocks, are then added to a public record, known as the blockchain.
Iran’s government has sent mixed messages about Bitcoin. On one hand, it wants to capitalize on the soaring popularity of digital currency and sees value in legitimizing transactions that fly under Washington’s radar. It authorized 24 Bitcoin processing centers that consume an estimated 300 megawatts of energy a day.
On the other hand, the government worries about limiting how much money is sent abroad
and controlling money laundering, drug sales and internet criminal groups.
Iran, pressured by power blackouts and pollution, targets Bitcoin
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Iran, pressured by power blackouts and pollution, targets Bitcoin
- The government launched a crackdown on Bitcoin processing centers, which require immense amounts of electricity to power their specialized computers — a burden on Iran’s power grid
Supplies running out at Syria’s Al-Hol camp as clashes block aid deliveries
DAMASCUS: An international humanitarian organization has warned that supplies are running out at a camp in northeast Syria housing thousands of people linked to the Daesh group, as the country’s government fights to establish control over an area formerly controlled by Kurdish fighters.
The late Friday statement by Save the Children came a week after government forces captured Al-Hol camp, which is home to more than 24,000 people, mostly children and women, including many wives or widows of Daesh members.
The capture of the camp came after intense fighting earlier this month between government forces and members of the Kurdish-led and US-backed Syrian Democratic Forces during which forces loyal to interim President Ahmad Al-Sharaa captured wide areas in eastern and northeastern Syria.
The SDF signed a deal to end the fighting after suffering major defeats, but sporadic clashes between it and the government have continued.
Save the Children said that “critical supplies in Al-Hol camp are running dangerously low” as clashes are blocking the safe delivery of humanitarian aid.
It added that last week’s clashes around the camp forced aid agencies to temporarily suspend regular operations at Al-Hol. It added that the main road leading to the camp remains unsafe, which is preventing humanitarian workers from delivering food and water or running basic services for children and families.
“The situation in Al-Hol camp is rapidly deteriorating as food, water and medicines run dangerously low,” said Rasha Muhrez, Save the Children Syria country director. “If humanitarian organizations are unable to resume work, children will face still more risks in the camp, which was already extremely dangerous for them before this latest escalation.”
Muhrez added that all parties to the conflict must ensure a safe humanitarian corridor to Al-Hol so basic services can resume and children can be protected. “Lives depend on it,” she said.
The SDF announced a new agreement with the central government on Friday, aiming to stabilize a ceasefire that ended weeks of fighting and lay out steps toward integrating the US-backed force into the army and police forces.
