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According to the Minister of Economic Affairs and Finance of Iran, Farhad Dejpasand, the country is getting closer to fulfilling its income tax targets. The minister noted that the adoption of new technology, like blockchain, has helped Iran grow its revenue and currently accounts for a third of the budget revenue growth.
Dejpasand noted that:
“Blockchains will account for 10 percent of the world’s gross domestic product in the next four years. As electricity consumption has increased we [have] limited the mining of cryptocurrencies, while in the long run, we cannot stand in the way of technology development.”
The crypto mining industry has experienced a boom in Iran thanks to the nation’s cheap energy. That said, the government has blamed this sector’s significant power consumption, coupled with this year’s drought, for the unsteady power supply witnessed in many cities of late.
Authorities revealed that licensed and illegal mining rigs consume over 2,300 megawatts daily.
New Technology Helped Iran Stave Off US Sanctions
Speaking at a launch event of two e-commerce projects, Dejpasand talked about the importance of electronic trade in a nation’s economic growth. According to the Tehran Times, the minister revealed that the share of e-commerce in Iran’s gross domestic product (GDP) has grown by about 2.4 times.
According to the Iranian E-Commerce Development Center, online trade transactions grew by four folds between March 20 and September 21, 2020, over the same period the year before.
Meanwhile, reports show that the number of newly issued online business licenses has tripled as older businesses scramble to expand into web-based sales.
Dejpasand noted that by implementing these new technologies, Iran has managed to stave off most economic sanctions imposed by the United States. New technology has also helped the nation in effectively handling the coronavirus pandemic.
While Iran has benefited heavily from new technology (blockchain) use, the government seeks to restrict several kinds of crypto-related activities in Iran. That said, the fintech industry has warned that restrictions on the crypto and blockchain industry could limit the opportunity potential of the country.
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