Iran Import Association demands regulatory clarity to use crypto in foreign trade
The head of Iran’s Import Association emphasized that stable regulations and infrastructure should be prepared to use cryptocurrencies for imports successfully.

In the aftermath of the first officially reported crypto payment in the sanctioned country’s foreign trade, Iran’s importers point to the necessity of stable regulations to continue trade via cryptocurrencies.

On Saturday local reports cited the head of Iran’s Importers Group and Representatives of Foreign Companies (Import Association), Alireza Managhebi, who emphasized that stable regulations and infrastructure should be prepared to be able to successfully use cryptocurrencies for imports:

“The question is, has the government developed consistent regulations for the cryptocurrency uses so that they will not change within two months and the businessmen active in this field will not be harmed?”

Managhebi also doubted the belief that the official use of cryptocurrencies for imports might end the dollar dominance in the Iranian market and reminded of a possible threat — the new payment method may lead to the emergence of rent-seeking business groups.

On Aug. 10, Iran placed its first international import order using $10 million worth of cryptocurrency. While the official did not disclose any details about the cryptocurrency used or the imported goods involved, Peyman-Pak said that the $10 million order represents the first of many international trades to be settled with crypto.

The Islamic nation has been positioned to embrace cryptocurrencies as early as 2017. In October 2020, it amended previously issued legislation to allow cryptocurrency to be used for funding imports.

In June 2021, the Iranian Trade Ministry issued 30 operating licenses to Irani miners to mine cryptocurrencies, which then must be sold to Iran’s central bank. Iran is now using those mined coins for import payments.

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Bitcoin mining to cost less than 0.5% of global energy if BTC hits $2M: Arcane
Bitcoin energy consumption share would rise to 0.36% only if its price surges to $2 million by 2040, according to new estimates by Arcane Research.

Bitcoin (BTC), the world’s most-valued cryptocurrency, has the potential to be a significant energy consumer in the future, but only if it reaches several million dollars, according to new estimates by Arcane Research.

Crypto research and analytics firm Arcane Research on Monday released a report estimating the development in Bitcoin’s energy usage toward 2040.

Authored by Arcane Research analyst Jaran Mellerud, the report points out that Bitcoin’s future energy consumption differs massively depending on the future Bitcoin price alongside factors like transaction fees, electricity prices and others.

If the BTC price hits $2 million in 17 years, Bitcoin may consume 894 Terawatt-hours (TWh) per year, surging 10 times from today’s level, the report suggests. Despite huge growth, such energy consumption would only account for 0.36% of the estimated global energy consumption in 2040, increasing from Bitcoin’s 0.05% share today, the analyst estimated.

“Currently, based on their energy consumption of 88 TWh and an average energy price of $50 per MWh, Bitcoin miners spend around 50% of their income on energy,” Mellerud noted.

Bitcoin’s future energy consumption would be much lower in less bullish scenarios. BTC price would need to reach $500,000 by 2040 for Bitcoin to consume 223 TWh per year. If Bitcoin trades at $100,000 in 17 years, BTC mining would consume just 45 TWh per year, the report notes.

The analyst went on to mention the significant impact of the Bitcoin halving, a quadrennial event implying a 50% reduction in miners’ block reward. According to the report, the BTC price must be rising at a tremendous pace due to the halving, while halving’s “mitigating effect” can be offset by growing transaction fees in the future. “Such an increase will only happen if there is a significant demand for using Bitcoin as a payment system,” Mellerud wrote, adding:

“The Bitcoin price depends on the market demand for Bitcoin as a store of value, while the transaction fees are driven by the usage of Bitcoin as a medium of exchange.”

As a store of value and a medium of exchange make up two of the most important functions of money, the report also suggests that Bitcoin’s energy consumption will only reach a significant level if Bitcoin succeeds as money.

As many BTC skeptics believe that such a scenario is hardly possible, they should not worry about Bitcoin’s energy consumption, Mellerud hinted, stating:

“I have good news for those of you who want to see Bitcoin's energy consumption decline: You can relax in your armchair, because your wishes will be fulfilled if Bitcoin fails as a monetary system. And you believe Bitcoin will fail, don’t you?”

The Bitcoin mining industry has suffered a major decline in 2022 amid the ongoing cryptocurrency winter, with many big crypto miners opting to sell their BTC holdings to continue operating. Mining companies in the United States have also faced pressure from regulators, with U.S. lawmakers requesting energy consumption data from four major BTC mining firms.

Despite the increasingly bearish climate, many Bitcoin miners are still optimistic about Bitcoin’s short and long-term price perspective. According to Canaan senior vice president Edward Lu, the mining industry is a “healthy and profitable business” in the long term.

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Tencent receives patent for blockchain-based missing persons poster
The company said its design aims to increase the efficiency of finding missing persons.

According to local news outlet 36kr.com, Chinese technology conglomerate Tencent recently received a novel patent for a blockchain-based missing person's poster. The patent took nearly three years to be awarded from the date of its first submission in December 2019.

The patent consists of a data generation request upon user submission that a person has gone missing. The proposal is then unveiled publicly on the blockchain for verification. Once a consensus has been reached regarding the request, it is then stored in the public ledger and forwarded to nodes for broadcasting to a wider audience. Tencent said in the patent application that the design seeks to improve the efficiency of looking for missing persons.

Tencent has been an early experimenter of blockchain technology among big tech firms, especially regarding the exploration of possibilities for integration with payment technology, although its efforts have been impeded somewhat by China's tough regulation surrounding crypto. Yet, its "FISCO BCOS" coinless blockchain developed jointly with Chinese telecom giant Huawei in 2018 for building decentralized applications remains active until this day.

In early July, Tencent shut down one of its nonfungible tokens platforms after the Chinese government clarified that it does not allow users to conduct private transactions post-purchase, along with declining sales.

China is currently embarking on a centralized approach to blockchain technology, with policy significantly favoring its digital-yuan (e-CNY) central bank digital currency instead of the digital tokens developed by private firms. Last week, the country rolled out its first-ever e-CNY-enabled Social Security card, which allows welfare to be deposited directly into the recipient's account in the digital yuan and used for spending.

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This Daily Dose was brought to you by Cointelegraph.

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