Argentine commune to mine cryptocurrency to combat the crisis

The commune of Serodino in the Argentine province of Santa Fe has decided to start mining cryptocurrencies to promote economic development. As reported by Ambito.

According to the head of the municipality, Juan Pío Drovetta, the town of six thousand residents faced financial difficulties, and authorities decided to turn to the экономике знаний. This led them to the idea of a cryptocurrency project, which received “immediate support” in the community.

“The response was very important for the joint participation of the public and private sectors in the collaboration of financial and human resources,” he noted.

Drovetta explained that the project will begin with the purchase of a mining rig consisting of six GPUs, funded by municipal funds and business investments. The mined digital assets are expected to be sold immediately. He did not specify which cryptocurrencies would be mined.

“This is a pilot from which we will be able to earn 60 000-70 000 pesos (~$532-$621) per month, depending on fluctuations in the exchange rate,” he said.

The head of Serodino said that the funds are planned to be used to upgrade the village’s railway infrastructure and restore connections with nearby settlements. The station began operating after 35 years of downtime.

He noted that for tax purposes the municipality consulted with specialists, since cryptocurrencies are not regulated in Argentina.

Regarding the business risk of the mining project, Drovetta said:

“We must understand that we do not plan to buy cryptocurrency for profit. Generating it is a different matter; here we are always in a winning position.”

In March, the Argentine parliament approved the plan to refinance IMF debt of $45 billion. The proposal includes a ban on dealing with digital assets in the country.