A town in Argentina is turning to cryptocurrency mining for funding – DiarioBitcoin

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A town in Argentina is turning to cryptocurrency mining for funding - DiarioBitcoin For Hannah Perez

The commune of Serodino, belonging to the department of Iriondo, will begin mining cryptocurrencies as part of a project promoted by the public and private sectors.

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It seems that Argentina has a new crypto hub: Serodino.

With less than 6,000 inhabitants, the town of Serodino, in the Province of Santa Fe, has decided to explore cryptocurrency mining as an alternative form of financing in the face of the economic crisis that the country is going through. As reported by the news media local authorities, the town’s president, Juan Pío Drovetta, announced the project this week.

In an interview for radio twoDrovetta advanced that the crypto mining proposal emerged in discussions with the “boys from the commune” on possible forms of financing for the municipality. Located 50 kilometers from Rosario, the town has been facing budget difficulties due to the inflation of the national currency. The middle Infobae He quoted the statements:

We have been working and researching on this, which is very broad and has to do with the knowledge economy where one tries to innovate, to evolve, to improve the knowledge one has for economic development”.

The new crypto mining center in Argentina

The communal chief assured the news media that the population of Serodino had been receptive to the plans. “I raised this above all with local SME entrepreneurs and the truth is that we had a very important reception.”, said Drovetta, adding that some of the businessmen who are supporting the project previously had knowledge on the matter.

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The surprise we had is that two of the businessmen who gladly supported the initiative already[…] they knew what we were talking about“, he recounted. Cryptocurrency mining operations will start as part of a pilot project jointly funded by the private and public sector. Both have pooled resources to buy the necessary equipment.

According to the media, the installation will initially have “6 video cards” on a crypto mining team. Although no details were provided about the mining machines or the cryptocurrencies that they will extract, the president of the commune said that they expect to generate between 50,000 and 70,000 Argentine pesos (USD $443 – $620) per month from the operation.

The municipality has no plans to maintain the cryptocurrencies, since the intention is to exchange the generated rewards into Argentine pesos. In general, Drovetta, who did not come across as particularly expert on the subject, was optimistic about the project. This is crypto generationhere you always winhe said, noting that the project was not focused on speculative trading.

You leave that hardware working for a certain time, let’s assume a month, and for a month the cryptocurrency will pay you and then we transform it into [pesos]. Approximately, we can say that in this pilot test, we can obtain $50,000. $60,000, $70,000 pesos per month.

100% of the profit will go to the community

The president also did not express fear about the energy consumption of the cryptominer, an issue that has been criticized by environmentalists around the world. In this regard, he assured that it is a small installation of “very little” energy consumption. “The problem arises when one speaks of a mining farm, there we are already talking about a much higher consumption”, he added.

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In the same way, he addressed possible tax challenges, indicating that the community is working with university professors from Rosario specialized in accounting. “to know the tax treatment of the profit that is generated”. “Actually there is no regulation, there is no legislation, because this is new“, Held.

Regarding the investment of the profits generated from cryptocurrency mining, he guaranteed that 100% will go to the community to finance infrastructure or education projects. During the radio program, Drovetta had highlighted Serodino’s road infrastructure problems, insinuating a possible destination for the resources. He also announced that the money could go to educational programs.

100% of that profit will go to an institution that will have to present a project“said the president.

The reports did not provide a launch timeline for the crypto mining initiative.


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Article by Hannah Estefanía Pérez / DailyBitcoin

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WARNING: This is an informative article. DiarioBitcoin is a means of communication, it does not promote, endorse or recommend any investment in particular. It is worth noting that investments in crypto assets are not regulated in some countries. May not be suitable for retail investors as the full amount invested could be lost. Check the laws of your country before investing.

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