Town in Argentina to Combat Inflation via Bitcoin Mining, Mayor Approves

Town in Argentina to Combat Inflation via Bitcoin Mining, Mayor Approves

The residents of a small town in Santa Fe will attempt to pull the local economy out of the gutter via crypto mining.

South American countries have suffered from serious economic issues over the past several years, with cryptocurrencies being one of the proposed ways to help the region get back on its feet.

Based on a report by a local news outlet, a small, sub-6000 citizen town in Santa Fe called Serodino has been suffering from a declining economy in recent times, especially after the local railroad ran into operational problems.

For this reason, the Mayor of Serodino Juan Pio Drovetta has begun his plans to bring in blockchain technologies. The decision was fully supported by the community, and the mayor agreed with local businesses to pursue the initiative.

In fact, the town has already acquired six GPUs and will soon be setting up its first Bitcoin mining rig. Mayor Drovetta hopes that the crypto mining operations will help the town recover from the harsh hits it took during the pandemic:

"It is a pilot test from which we could obtain 60 or 70 thousand pesos per month depending on the price fluctuations, with one hundred percent of the profit going to local institutions..."

Likewise, the mayor touched on crypto taxes and regulations, stating that, in time, the local blockchain industry will have a regulatory framework, as locals are already working closely with university professors specializing in the area.

When asked about the risks that crypto mining may pose, Drovetta claimed that he was confident in future technologies, highlighted that they’ll be generating crypto, not buying it, and is confident that the town will come out on top despite any price fluctuations.

Argentinians have been very receptive to cryptocurrencies amidst the economic turmoil and strict rules on purchasing foreign fiat currency.

Back in January, the Strike Wallet, built on Bitcoin’s Lightning Network, started its operations in Argentina, with further plans to expand across Brazil and Colombia.

Dom Z. - Crypto Analyst

by Dom Z. - Crypto Analyst, BitDegree


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