After many margins, the report of the Parliamentary Economic Commission on digital currencies was read today. In this report, while pointing to the increasing development of information technology and the importance of digital economy, the results of the studies of this commission were also presented in the form of several comments. Not paying attention to digital currencies can be harmful, the report said.
According to Digital Currency and to Quoted From the Young Journalists Club, Gholamreza Marhaba, the spokesman of the Economic Commission of the Islamic Consultative Assembly, read the following report of the Economic Commission on the cryptocurrency in the open court today, Tuesday, September 14th.
Supervisory report of the Economic Commission on the situation of the cryptocurrency mining industry in the world and its internal exchanges in the country
Subject of Note (1) of Article (45) of the Rules of Procedure of the Islamic Consultative Assembly
With the increasing development of information technology and the importance of digital economy, we are witnessing the emergence of new technologies such as currency cryptocurrencies (digital currencies or asset cryptocurrencies) as products based on blockchain technology in the world. The cryptocurrency is a vague phenomenon with unknown roots, and even the owner of the idea (Mr. Satoshi Nakamoto) is an unrealistic name. Hence, what is the scenario behind the scenes of this phenomenon, and especially its biggest example, “Bitcoin”, is a separate issue.
The decentralized nature of cryptocurrencies and the current emphasis on anonymity of holders and traders and their lack of authentication are the biggest challenges facing countries in making decisions in this area. As a rule, the central banks of the countries do not agree much with such a phenomenon, which can be the basis for all kinds of destructive actions in the underground economy and reducing the central bank’s power to implement its economic policies.
Calculating the currency code as money or currency is a matter for economic experts to consider; Because its value and purchasing power change almost instantaneously, although this phenomenon was initially defined and formed as a means of exchange, it cannot be neglected and completely denied. In addition, this phenomenon can be defined as intangible assets and at a glance, as financial assets. In each of these perspectives, the macroeconomic effects of this phenomenon can be explained differently. Some consider this phenomenon as a kind of simulation of precious metals, which have been able to gather a lot of fans in their 10-year lifespan, mostly due to the limited number that can be created. The lack of geographical limitation of this phenomenon has led to the formation of cross-border economy and industry, which has many applicants in the world, including Iran, both in terms of creation (extraction) and in terms of exchanges. Due to lack of organization, these applicants work in informal and sometimes underground conditions. The phenomenon of cryptocurrency, in addition to becoming an expanding issue and affecting national and global economies, has led to the creation of domestic markets and related industries, and as much as its proper management can create opportunities for the economy, it can be ignored. Be harmful. With this description, the cryptocurrency was examined by the Economic Commission as an important and sensitive issue, the results of which are presented as follows:
The total value of the world cryptocurrency market is estimated at $ 1.5 trillion with a daily turnover of $ 53.1 billion, with Bitcoin alone accounting for 57% of this market. The annual extraction of currency codes in the world is estimated at $ 15 billion and in Iran at $ 1.1 billion (in the current informal situation). It should be noted that currently out of 324,000 bitcoins mined annually in the world, 19,500 bitcoins are mined informally in Iran.
How to deal with the Ramzarz phenomenon can be classified into 5 areas:
Use of currency codes for mobile foreign exchanges, extraction and production of existing currency codes, design of national or multilateral currency codes, currency code exchanges, industries related to currency codes.
1- In the field of using the currency code for foreign exchanges, it seems that due to the possibility that the currency code reduces the effect of sanctions – due to the difficulty of monitoring their exchanges – one can not be indifferent and unplanned to use this capacity. . As a rule, by calculating the risks of losing capital for various reasons and comparing it with the conditions of informal exchanges in the world, which has similar risks, the use of various methods to prevent the country’s financial transactions seems logical and necessary. It can be defined as an alternative route to clearing or facilitating such transactions. In this area, regardless of the issue of extracting the currency code, we can receive the currency code for the country’s exports to different countries and pay the same currency code for imports.
2- In the field of extraction and production (mining) of the code of existing currencies (including bitcoin), the mentioned advantage can be in the form of converting the country’s fossil energy sources or other natural resources such as water, wind and nuclear energy into electricity and then extracting the code. Currency is defined using generated electricity. In fact, if the export of fossil energy and electricity is restricted, a way will be defined to convert it into a currency code and use it for essential imports in the country. Of course, the outflow of currency for the purchase of mining devices and equipment should also be considered. Also, the existence of a booming global cryptocurrency market and its ability to be converted into real currencies can be a potential capacity for access to foreign exchange resources.
3- In the field of designing national or multilateral currency codes, it is perhaps one of the most important and neglected parts of the currency code discussion, although some efforts have been made for it. But there seems to be a lot of negative feedback about the ineffectiveness of this measure. It seems that this is where, as the internal capacities in creating a national information network, internal media and domestic satellite, serious efforts of policymakers and managers of the country should be used so that instead of playing in a vague and designed context, the creator himself The rules of the game and the exercise of sovereignty. This is the biggest point of resistance and opposition of many market participants, which should be discussed in more depth.
4- The field of cryptocurrency exchange, and especially the creation of cryptocurrency exchange platforms in the country, is the most important and challenging field of discussion in the field of currency cryptography, which requires careful study and deep foresight. Incidentally, there is a big risk to the country’s economy in this sector, but a purely passive approach to this area can never be a good solution to face this risk. It is necessary to turn this threat into an opportunity and to examine more closely the positive aspects of the issue of currency exchange, along with its risks, as well as a detailed study of the macroeconomic effects of currency exchange in the country by the general public.
5- In the field of industries related to currency cryptography, first, the electricity industry and how to share the existing electricity between this sector and other sectors of the economy or the development of electricity generation capacity to develop currency cryptocurrency extraction is discussed. Also the technology of creating and producing currency code (method of proving work or proof of share or other methods that have a very significant impact on electricity consumption and other aspects of the subject), location and facilities of mining units (farms or farms), and how to access mining equipment (Miner) including the import or manufacture of these devices are other important discussions of cryptocurrency related industries.
Therefore, it is necessary for the government with maximum goal setting and planning to evaluate and study the future research of this issue, organize and use the capacities of this field to the maximum and to increase the country’s power in this field, by choosing the appropriate strategy in all five areas. Take action.
Tips in this regard
A- Some estimates (from a review of Iranian online exchange sites) indicate that in the domestic market, 700 bitcoins, equivalent to about 40 million dollars (equivalent to about 1000 billion tomans), are traded informally. In some estimates, the number of transactions of cryptocurrencies in famous domestic markets has been estimated up to 2 thousand billion Tomans.
The overwhelming interest in benefiting from the rise in the price of cryptocurrencies is an undeniable fact. Hence, people are widely trending and operating in this market. However, none of the exchange platforms for these cryptocurrencies in the country are licensed, and of course, no policy has been made for legal action in this area in the country, which is one of the weaknesses of the country in this regard.
Due to the lack of regulations and the lack of an organized market, the general public suffers from online purchases or even suffers from online purchases due to the lack of necessary knowledge in the safe purchase of cryptocurrencies with more reliability and also lack of access to exchanges and internally responsible sellers. Involuntarily involved in money laundering offenses, it is necessary to organize these requests while appointing a trustee.
Of course, one of the main concerns is the consequences of recognizing the currency code in domestic exchanges, because firstly, using the currency code in domestic exchanges will weaken the rule of the rial and reduce the central bank’s authority. The currency code can cause damage due to its uncontrollable features.
Opportunities, challenges, capacities and needs of organizing the mining industry include the following:
1- One of the challenges raised in the winter of this year was the lack of electricity in the winter, which was a new issue in recent years and after the development of the electricity industry.
2- This industry relies heavily on technology and therefore has a short life span, also the speed of technology change and high depreciation are other problems.
3- One of the effective mechanisms in the prosperity of the cryptocurrency industry is to establish a relationship between this industry and electricity producers and also to create its revenue transparency.
4- The Ministry of Energy has often had long delays in fulfilling its financial obligations to power plant owners, and this has caused severe financial problems for private investors in the power plant sector, which can help our electricity industry by lifting existing bans. .
5- Non-implementation of Article 50 of the Sixth Plan Law in the last three years (development of renewable power plants to 5% of the country’s electricity generation capacity), has caused damage of 1400 thousand billion rials to the national economy.
Proposal for approval
The law “Supporting the extraction of currency cryptocurrencies and organizing the creation, production (extraction) and internal exchange market of cryptocurrencies” shall be approved with the following provisions:
Article 1- The government is the reference for regulating the exchange of cryptocurrencies inside the country and is obliged to organize the creation, production (extraction) and market of internal exchanges of cryptocurrencies within three months after the entry into force of this law.
Note 1: The use of currency codes, other than the national currency code, as a means of payment within the country or to set up and operate an internal payment network is prohibited.
Note 2: The Exchange and Securities Organization is obliged to submit a proposal to create a legal basis for investment or to use price fluctuations of cryptocurrencies in the form of investment funds or instruments subject to paragraphs 21 and 24 of Article (1) of the Securities Market Law of the Islamic Republic. Iran to act as the Supreme Council of the Stock Exchange. The Ministry of Economic Affairs and Finance is obliged to propose to the Cabinet, if necessary, the necessary regulations for the implementation of this note.
Article 2: The government is obliged to take the following measures within three months after the notification of this law and report to the Economic Commission of the Majlis:
- A- Estimating the expansion of the creation and production of cryptocurrencies, especially the cryptocurrencies of the world, the validity and acquisition of the major market share in the world
- B- Predicting the future of technology in the field of creating, developing and exchanging cryptocurrencies
- C- Targeting the country’s share of the extraction and acquisition of cryptocurrencies for at least 10 years after the time of notification of this law
- D- Estimating the effects of the expansion of cryptocurrency mining in the country, especially in terms of macroeconomics, energy and environment
Article 3- The Ministry of Silence is in charge of the currency code extraction industry and is responsible for issuing licenses for its extraction units.
Note: According to the announcement of the Ministry of Industry, Mines and Trade or the Computer Guild Organization, the police force of the Islamic Republic of Iran is obliged to seal the unauthorized units for extracting cryptocurrencies and introduce the beneficiary of these units to the judicial authorities.
Article 4- The government is obliged to plan in such a way that while providing the energy required by the existing industries and household consumption in accordance with the consumption pattern, the energy required to extract the currency code according to the target mentioned in paragraph (c) of Article (2) of this law, Emphasize on private sector investment in energy production.
Note 1- Currency code extraction units can supply their energy carriers from the energy exchange or conclude bilateral contracts with domestic and foreign producers and are allowed to transit the required electricity or excess consumption of both up to the nominal needs of the farm, through the network. They are all over the electricity.
Note 2- Ramzarz extraction units are obliged to purify the electricity and gas consumed with the produced Ramzarz in case of supply of electricity and gas through the government and the request of the government. Characterized.
Note 3- Ramzarz extraction units can obtain a license from the Ministry of Energy and with the required capacity to construct or participate in a power plant and generate electricity in excess of their consumption to the Ministry of Energy in accordance with the notification criteria and in accordance with Article 48 of the law. Sixth five-year plan or sell domestic and foreign applicants.