Earlier this week, the Parliament of Iran Research Center published a report suggesting cryptocurrency mining licenses issued in January could generate new tax revenue and bureaucratic fees. A related proposal by the same government-run center suggested this could bring the government upwards of $1 billion in annual revenue from the domestic cryptocurrency mining industry, which is estimated to be valued at $8.5 billion.
The report also recommends allocating a portion of the Iranian government’s 2021 budget to cryptocurrency mining, though the specifics of that proposal are unclear.
In short, if the Trump administration is trying to starve the Iranian regime into submission, bitcoin may give the Islamic Republic a lifeline.
Mnuchin’s comments come days after the Trump administration proposed increasing the Treasury Department’s 2021 budget for cryptocurrency oversight. In 2019 alone, various U.S. government agencies spent $5 million on blockchain analytics services from Chainalysis.
Disclosure Read More
The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.