Authorities in Iran have seized around 1,000 Bitcoin mining machines from two abandoned factories, according to Reuters .
The report hasn’t stated what cryptocurrency was being mined, or for how long the farm had been operating. It’s also unclear why, or for how long the farms were abandoned.
“Two of these Bitcoin farms have been identified, with a consumption of one megawatt,” Arash Navab, a power official in the central province of Yazd, told state television.
The news comes just days after local media reported that Irananian officials were blaming the country’s recent increase in energy consumption on cryptocurrency mining. The country witnessed a seven percent increase in energy consumption in the month ending June 21.
In September 2018, Iran‘s Supreme Council of Cyberspace was shaping up to recognize cryptocurrency mining as a legitimate industry , however, the country is still operating under nationwide ban on the digital assets.
In April 2018 , Iran‘s central bank prohibited other banks from dealing with cryptocurrencies over fears of money laundering.
An Iranian energy official recently said that using the country’s national grid to power cryptocurrency mining machines is illegal. So, it seems to be a bit of a grey area at the moment.
That said, some in Iran still believe cryptocurrency could be a solution to help mitigate international sanctions placed on the country.
A group of designers from Iran recently submitted plans for a cryptocurrency mining skyscraper water park to an international architecture prize. Interestingly, their plans use hydro electric to power Bitcoin miners to keep them entirely off the national grid.
Ripple and NEM launch EU blockchain association to cozy up to regulators
Blockchain firms want to stay on the good side of Europe, it seems. Ripple, NEM, and company have founded a new association to represent the interests of blockchain and cryptocurrency businesses across the continent.
The so-called “Blockchain for Europe” association claims to be the first unified voice for the industry on European soil. The undertaking aims to foster understanding of the technology – and highlight the “true nature and potential” of blockchain and distributed ledger tech.
As part of this agenda, Blockchain for Europe wants to ensure the European Union and member states draft up regulation that stimulates growth in the sector. Unfortunately, its website appears to be down at the moment.
“ Ripple is delighted to be a founding member of Blockchain for Europe,” said Ripple head of regulatory relations Dan Morgan. “This is a critical time for policymakers in Europe as they seek to develop the right regulatory framework to capture the benefits of both digital assets and blockchain technology.”
“ There is a lack of unbiased information especially when it comes to the open and decentralised [sic] application of the technology,” added NEM co-founder Kristof Van de Reck. “We aim to provide insights which are not tailored to the agenda of specific organisations or stakeholders.”
Despite the messianic tone, it is clear the association is here to look out for the interests of blockchain companies. Hopefully European regulators will also consider the interests of consumers when consulting blockchain companies about the best ways to create a legal framework that allows for growth in the industry.
As far as the “true nature and potential” of blockchain goes, many would argue that the technology is still in its infancy – and is riddled with problems that might end up hurting consumers .
With this in mind, regulators need to remain careful about the boastful marketing lingo often employed by blockchain startups looking out for their own interests. While blockchain is certainly an intriguing prospect, the technology is far from being a viable commercial-grade solution – and regulators need to consider that.
Europe and the blockchain
For the record, European authorities are gradually getting into blockchain. The European Commission – the union’s main executive body – has set up the EU Blockchain Observatory and Forum to monitor growth in the industry and work out the best path to regulating the space.
Indeed, the Observatory is already getting busy. Recently, the agency released a report noting some of the biggest clashes between blockchain technology and the new General Data Protection Regulation (GDPR).
The report suggests that while permissioned blockchains won’t have trouble ensuring compliance with the new law, permissionless blockchains like Bitcoin might be in trouble .
It seems that with Europe for Blockchain, Ripple and company want to make sure they’re not left behind.
IBM joins ING in saying central bank digital currencies are on the way
ING isn’t the only institution that’s expecting central bank digital currencies (CBDCs) to be a thing quite soon.
According to a report conducted by old-school tech firm IBM and the Official Monetary Institutions Forum (OMFIF), we can expect to see fiat-based digital currencies within the next five years.
These currencies will exist as “either a complement to or as a substitute for notes and coins.” With that in mind, one struggles to see how these currencies are any different to the digital representations we have in our online bank accounts now.
The report states that it’s most likely the first CBDC will be launched by a G20 central bank in a smaller and less complex economy. For the main reason that there will be fewer regulatory hurdles to overcome.
As part of the study, representatives from 23 banks were asked about CBDCs. More than half of them feared that projects like Facebook‘s Libra would undermine monetary sovereignty.
IBM isn’t the only firm that’s expecting CBDCs to become a mainstay of our banking future.
Earlier this month, Dutch bank ING published an article speculating that we would see a “fully-fledged central bank digital currency” in the near future.
ING’s chief economist Mark Cliffe and its lead economist for digital finance Teunis Brosens said we “might well see a central bank digital currency emerge within the next five years.”
