Russia and Iran are collaborating on creating a single BRICS currency, the Iranian ambassador to Russia has claimed. He noted that over 60% of the two nations’ bilateral trade is conducted in Russian rubles and rials, reflecting a shift away from the U.S. dollar. Russia-Iran Trade Flourishes With National Currencies Iran and Russia are reportedly […]
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BRICS Gold-Backed Currency Will Benefit Iran, Weaken US Dollar, Iranian Official Says
An Iranian official has stated that Iran stands to benefit from a gold-backed common BRICS currency. The official further asserted that such a BRICS currency would erode the U.S. dollar’s dominance and result in increased wealth for Iranians holding gold. “A tremendous change is taking place in the international economy,” the official stressed.
Iran Will Benefit From Gold-Backed BRICS Currency, Official Says
Rasoul Mousavi, Assistant Foreign Minister and Director General of the South Asia Department of the Iran’s Ministry of Foreign Affairs, stated Sunday that a common BRICS currency backed by gold will benefit Iran and weaken the U.S. dollar, Press TV reported. The BRICS comprises Brazil, Russia, India, China, and South Africa.
The Iranian official’s remarks followed a report last week by Russian news outlet RT claiming that Russia has confirmed the creation of a gold-backed common currency within the BRICS framework. According to RT, this announcement is expected to be officially made during the upcoming leaders summit of the economic bloc scheduled for August.
“A tremendous change is taking place in the international economy,” Mousavi was quoted as saying. The official elaborated:
The BRICS’ introduction of a gold-backed currency, which is supported by 41 countries with large and influential economies, will weaken the dollar and the euro and will benefit countries such as Iran, while Iranians in possession of gold will experience a wealth increase.
While Mousavi believes that a common BRICS currency backed by gold would benefit Iran and erode the dominance of the U.S. dollar, the economic bloc has not officially announced any plans to create such a currency.
Last week, Leslie Maasdorp, vice president and chief financial officer of New Development Bank, also known as the BRICS Bank, stated that the creation of BRICS currency as an alternative to the U.S. dollar is a medium to long-term aspiration.
Nonetheless, there is a prevailing belief that the establishment of a successful BRICS currency will diminish the dominance of the U.S. dollar. The BRICS economic bloc is also expanding its influence and is considering adding more members.
Do you think a common BRICS currency backed by gold will benefit Iran? Let us know in the comments section below.
Iranian Professor: Saudi Arabia May Join De-Dollarization Shift as US Dollar Is Now ‘Unreliable and Dangerous’
A University of Tehran professor and member of Iran’s Presidential Delegation to China has stressed the importance of de-dollarization for the international community. “The dollar has been used as a weapon by the U.S. against different countries. It is unreliable and it is dangerous,” the professor warned.
Iranian Professor Stresses the Importance of De-Dollarization
Professor Mohammad Marandi discussed de-dollarization and Iran’s relations with Saudi Arabia and China in an interview with Chinese government-owned news outlet Global Times, published Wednesday. He is an Iranian American academic who is the University of Tehran’s Vice President for International Affairs and a member of Iran’s Presidential Delegation to China.
Commenting on the de-dollarization trend in several parts of the world, Marandi emphasized:
De-dollarization is very important for the international community, because the dollar has been used as a weapon by the U.S. against different countries. It is unreliable and it is dangerous.
“Therefore, countries like China, Iran, and Russia among many others, need to move away from the dollar so that the U.S. cannot use it as a weapon against them … The U.S. should not be allowed to use the dollar to put pressure on other countries,” the professor added.
The restoration of bilateral ties between Saudi Arabia and Iran, brokered by China in March, has been seen as a significant step towards peace in the long period of turbulence in the Middle East.
“Iran already sells a substantial amount of petroleum using currencies other than the U.S. dollar,” Marandi continued. “I think for Saudi Arabia, ultimately it will be in its best interests to move away from the dollar as well in order to make sure that it is not vulnerable or less vulnerable to the U.S.” The professor opined:
If the rapprochement continues, then I think the chances for Saudi Arabia to join the camp of de-dollarization increases substantially.
Moreover, he said: “Since China is a major energy importer from the Gulf region, it would be ideal for China to be able to use China’s yuan to import energy from the region.”
What do you think of Professor Mohammad Marandi’s view? Let us know in the comments section below.
Bittrex Returning Crypto Funds to Iranian Users After 2-Year Freeze
n Bittrexs Iran-based users will receive their frozen funds under special conditionsn
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Iranian Govt Authorizes Cryptocurrency Mining as Industrial Activity
n The Iranian government has authorized domestic cryptocurrency mining as an industrial activityn
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Iranian Government Plans to Authorise Cryptocurrency Mining
Abdol Nasser Hemmati, the governor of the Central Bank of Iran (CBI), announced yesterday that the government plans to authorise the mining of digital assets in the nation. However, those running computer systems to profit from their support of cryptocurrency networks will be charged for electricity at the country’s export price rather than the cheaper, subsidised rate.
Iran has reportedly become quite the hot spot for Bitcoin mining in recent months, thanks largely to its generous electricity subsidy. There are even reports of Chinese cryptocurrency miners relocating to the country to take advantage of the cheap rates.
New Executive Law to Authorise Cryptocurrency Mining in Iran
According to a report in domestic news publication PressTV, the governor of the CBI stated yesterday that the national government has already approved sections of an executive law that would allow for the mining of cryptocurrency by Iranian citizens.
![](https://www.newsbtc.com/wp-content/uploads/2019/03/crypto-mining-bitcoin-power-energy.jpg)
Cryptocurrency miners are always on the lookout for cheap electricity to run the required sophisticated computer systems.
Abdol Nasser Hemmati added that there would be conditions to the authorisation. Firstly, he stated that the electricity rate charged to those mining cryptocurrency would be at the nation’s export rate. This ranges from about 7c to 10c per watt. Previously, many of the nation’s digital asset miners were using the heavily subsidised rate charged to regular Iranian citizens. At just 5c per watt, it’s understandable why such a surge in the activity has been reported lately.
The second condition stated by the bank governor was that mined cryptocurrency should “be fed back to the national economic cycle.” Presumably, this is a measure intended to crack down on the Chinese miners suspected of setting up in Iran to take advantage of the low-cost energy.
Interestingly, Hemmati added that any new currencies backed by other assets – currencies, gold, or anything else – would not be permitted by the CBI.
The announcement by the Iranian central banker comes as something of a surprise given recent events in the nation. The surge in the numbers of cryptocurrency miners exploiting the subsidised power there forced authorities to launch a crackdown. In the process, they reportedly seized thousands of computer systems from factories, greenhouses, mosques, and other locations.
Perhaps more baffling is the fact that cryptocurrency trading is currently illegal in Iran. NewsBTC reported on the nation’s deputy governor for new technologies confirming as such earlier this week. Those prosecuted for the activity could serve up to five years in jail. How the newly-authorised Iranian cryptocurrency miners are supposed to sell the cryptocurrency they are rewarded is anyone’s guess.
Many analysts have previously stated that Iran could benefit from adopting a cryptocurrency as a way to counteract the US economic sanctions against it. However, judging by its stance towards the technology in recent years, the nation seems more cautious to explore this, or better at hiding it, than the likes of North Korea.
Related Reading: Report: North Korea Is Evading US Sanctions Using Cryptocurrencies
Featured Images from Shutterstock.
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Iranian Official Says US Congress is Working to Block Irans Crypto Mining
n Representative for Irans Ministry of Industry, Trade, and Supply says US Congress sees mining in Iran as a threat to the success of sanctionsn
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Bitcoin (BTC) Firm Adding 19.3%, Iranian Authorities Seize Mining Gear
- Bitcoin (BTC) up 19.3 percent
- China changing its wordings on Bitcoin
Steadfast as they are, Bitcoin bulls could get a shot in the arm in days ahead. That’s albeit news of Bitcoin mining gear seizure in Iran. So far, BTC prices are stable and may thrash predictions if there is a surge past ,300.
Bitcoin Price Analysis
Fundamentals
After a mostly successful week, there is a predictable correction. Mild as it is, Bitcoin bulls are resilient, rejecting attempts of lower lows. However, considering how cautious market participants are, any correction below ,000 could spark a wholesale dump.
Possible support is at ,500 or lower, but in any case, any drawdown is another opportunity for savvy traders waiting for trend resumption. Already, this consolidation is allowing some to exit their longs in anticipation of a correction, clipping off some of their gains.
Despite speculations, Bitcoin fundamentals are changing for the better. Bitcoin bulls are solid. Encouragingly, China is changing its wordings on crypto as pundits interpret it as bullish. Overly, that will reassure the market. By any chance, if the Chinese government opens the door, allowing legal trading of any form, BTC will be the biggest beneficiary.
Meanwhile, reports in Iran reveal that state authorities seized 1,000 Bitcoin mining machines from two facilities within the embattled Islamic republic. Following an abnormal surge of electricity demand in June, investigations zeroed in on the two Bitcoin mining farms consuming around one megawatt of state power.
Regardless of Bitcoin energy needs, pegging the world’s largest asset to a utility draws value. Besides, in Iran, economic sanctions imposed by the US and allies is straining the country’s economy. As a result, Bitcoin is turning out to be a preferred store of value, which is fitting at a time when inflation is wiping wealth.
Candlestick Arrangement
Steady in the past 24 hours, BTC is bullish from last week. By adding 19.3 percent, buyers are in control. Note that BTC surge is nearly perpendicular.
Spiking to 111 percent year-to-date and adding over ,000 after bottoming up from ,200 at peaks, the sentiment is bullish.
Therefore, partly because of that, there is a rejection of lower prices. BTC bulls are firm above ,200. However, since prices are ranging inside June 27 bear bar, sellers have a chance from an effort versus result point of view. If prices drop below June 26 lows, BTC will likely slide to ,500 in a retest.
Technical Indicator
Anchoring this trade plan is June 26 bull candlestick. It is not only extensive, but the bar has high trade volumes of 81k. As such, any spike invalidating and confirming losses of June 27 or confirming buyers of June ought to be with high participation exceeding 81k.
Chart courtesy of Trading View. Image Courtesy of Shutterstock
The post Bitcoin (BTC) Firm Adding 19.3%, Iranian Authorities Seize Mining Gear appeared first on NewsBTC.
Iranian Authorities Shut Down Two Crypto Mining Farms Amid Power Spike
Authorities in Iran have reportedly seized roughly 1,000 bitcoin mining machines from abandoned factories.
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Iranian Authorities Confiscate 1,000 Bitcoin Mining Machines
n Following a surge in power consumption, Iranian authorities detected and seized 1,000 Bitcoin mining machinesn
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