Argentinian town to invest in crypto mining to fight inflation and upgrade infrastructure

The city of Serodino in Argentina’s Santa Fe Province may start to mine crypto in a bid to boost the cash wanted for its rail infrastructure improve. Its mayor doesn’t see any danger in mining the digital currencies that may be offered instantly. 

Because the native media reported on April 10, the city of 6000 folks has already bought six graphics playing cards and shall be shopping for a mining rig within the nearest future. Based on Sorradino’s mayor Juan Pio Drovetta, the initiative to mine cryptocurrencies was supported by the area people.

Like many different rural cities in Argentina, Sorradino was hit laborious by the COVID-19 pandemic and the ensuing inflation, and struggles to pay for an improve of its railroad infrastructure, which got here again in use for the primary time in 33 years final yr. The improve may even goal at rails expenditure connecting Sorradino with the important thing cities close by. 

Drovetta estimated the month-to-month revenue that the city’s potential mining operation would generate to be within the area of a number of hundred U.S. {dollars}. The mayor didn’t specify which cash shall be mined in Sorradino. In his feedback concerning the doable dangers of crypto property’ worth volatility, he emphasised that whereas no direct buy of crypto is deliberate, mining stays a secure funding choice:

“We aren’t shopping for cryptocurrencies and seeking to make a revenue on a speculative transfer whereby we [either] win [or lose]. What we shall be doing is producing cryptocurrencies, so we’ll all the time win.”

Drovetta additionally underlined that the city is planning to pay taxes from its mining revenue, having already carried out essential analysis on the matter. 

Ought to it kick off its mining operation, Serodino may set a singular precedent of a direct group funding in crypto mining. It’s far more frequent to witness the institutionalized mining gamers buying energy capacities in small cities (like Bitmain within the Texan city of Rockdale) and even central governments planning to assemble mining cities from scratch, as within the well-known Salvadoran venture of “Bitcoin Metropolis”.

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