Paraguay’s Advantages for Bitcoin Mining Attract Nasdaq-Listed Company

Paraguay's Advantages for Bitcoin Mining Attract Nasdaq-Listed Company

Future Fintech (FTFT), a Chinese-American e-commerce company that offers services with cryptocurrencies, is looking to Paraguay. The company, which is listed on the Nasdaq stock exchange, is evaluating the possibility of opening a Bitcoin mining farm in the South American country.

Company executives mention two factors that led them to focus on the Guaraní nation: government support for the mining industry and energy resources from Paraguay.

On the first point, CriptoNoticias extensively reported on the government interest in Paraguay to exploit the mining business in its territory. On the second, the vast sources of hydroelectric energy – which is renewable and cheap – available to the nation make many consider it “a paradise” for Bitcoin mining.

“We will work with our local consultant to review Paraguay’s hydroelectric and clean energy resources, locations for the development of a mining farm, and the preferential policy treatment that we could receive for our capital investment,” explains Future Fintech CEO, Shanchun Huang.

The executive adds that they plan to provide updates to their shareholders “with additional information on this potentially important development for the company.”

An important feature of cryptocurrency mining in Paraguay is that it could be powered by clean and environmentally friendly hydropower, as Paraguay has abundant hydropower resources. Its Itaipu hydroelectric dam is one of the largest in the world, with a generation capacity of 14 gigawatts.

Shanchun Huang, CEO of Future Fintech.

Paraguay's Advantages for Bitcoin Mining Attract Nasdaq-Listed Company
The Itaipu Dam is a binational hydroelectric power station of Paraguay and Brazil on the Paraná River. Source: Herr stahlhoefer /

FTFT Hints at Possible Location of Bitcoin Mining Farm in Paraguay

The evaluation stage to which the company refers is not merely a passive study from the offices that the company has in Beijing, China and Florida, United States. On the contrary, they are already in dialogue and negotiations with Paraguayan officials.

A Press release details the meeting between the CEO of fintech and the Paraguayan ambassador in Qatar, Ángel Barchini that took place a couple of weeks ago. The text reads: “on behalf of the Paraguayan Government, the ambassador invited FTFT to consider business development opportunities in Paraguay, including that of the cryptocurrency mining business.”

The company also received –according to them- official invitations from the Minister of Social Development of Paraguay and of the mayor of the city of Coronel Oviedo, where they could establish their operations.

Paraguay's Advantages for Bitcoin Mining Attract Nasdaq-Listed Company
FTFT is in talks with officials of the city of Oviedo, and they are evaluating the possibility of establishing their operations there. Source: Google Maps.

Coronel Oviedo, popularly known as Oviedo, is in the center of the Eastern Region of Paraguay. It is the capital of the department of Caaguazú and is located 132 kilometers east of Asunción, the capital of the country.

To accelerate the advance towards Paraguayan territory, Future Fintech hired the former deputy minister of the National Department of Energy of Paraguay, Emilio Buongermini, who now serves as the company’s consultant.

Buongermini has work experience in the private sector. For example, he held a management position at LCH SA., a company that years ago explored Paraguay’s oil potential.

FTFT and cryptocurrencies: a relationship with history

The farm in Paraguay, if the project is completed, it would be the first investment of this company in Bitcoin mining. Regardless, the company has experience in the use of blockchains and crypto assets.

The official website describes that “the operation of the company includes an online trading platform based on a blockchain: Chain Cloud Mall.” In addition, they are in charge of “an incubator for blockchain-based application projects, a digital payment system (DCON) and a cross-border e-commerce platform (NONOGIRL).”

Previously, the company already had several products in the fintech area. Future Fintech has been listed on the Nasdaq Stock Exchange since 2008. Currently the price of its shares is not at its best. Each FTFT share is trading at $ 2.11 at the time of writing. Its all-time high was reached in April 2010, when it reached almost USD 50, according to the record provided by Yahoo Finance.

See also  Bitcoin miners vs. Sunacrip: a legal battle is about to take place in Venezuela

Leave a Comment

Your email address will not be published.