Argentinian Town to Invest in Crypto Mining Despite Country’s IMF Deal That Expects Otherwise

A chunk of the minted cryptocurrencies will also be converted into Argentina's fiat currency.

By Radhika Parashar | Updated: 13 April 2022 17:00 IST

Argentinian Town to Invest in Crypto Mining Despite Country’s IMF Deal That Expects Otherwise

Photo Credit: Pixabay/ Victorumeche

Crypto mining is a power intensive process that requires high amounts of electricity

Highlights

Juan Pio Drovetta, mayor of Serodino supports crypto mining
Some generated cryptocurrencies will be converted to fiat
Serodino aims to make upto ARS 70,000 (roughly Rs. 47,000) monthly

A town called Serodino in Argentina is looking to gather funds to upgrade its rail infrastructure and is looking to do so via crypto mining. The town of over 6,000 residents, has reportedly begun purchasing graphic cards and mining equipment to generate income via crypto mining amid times of economic slowdown. Juan Pio Drovetta, the mayor of Serodino has said he sees no risk in the process of generating cryptocurrencies that can be put out for sale soon after they are minted.

A chunk of the minted cryptocurrencies will also be converted into Argentina's fiat currency to finance some infrastructural renovations.

“We could obtain up to ARS 70,000 (roughly Rs. 47,000) per month depending on the fluctuation,” local media Ambito.com quoted Drovetta as saying.

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The development comes days after Argentina signed a deal with the International Monetary Fund (IMF) that requires the nation to discourage crypto activities. In return, the IMF extended Argentina's deadline to repay its debt of $45 million (roughly Rs. 342 crore).

The mayor of Serodino however, believes that his town will not be breaking any laws.

“There is no regulation because it is a new process. We are not buying cryptocurrencies and looking to make a profit on a speculative move whereby we [either] win [or lose]. What we will be doing is generating cryptocurrencies, so we will always win", Drovetta has reportedly noted.

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Blockchain analytics firm Triple-A estimates that over 1.3 million people, 2.94 percent of Argentina's total population, currently own cryptocurrency.

Meanwhile, other regions around the world are also looking to legalise and allow crypto mining.

Russia, for instance, is looking to regulate and legalise crypto mining from the homes of its citizens.

The process of crypto mining is infamous for gobbling up loads of energy and disrupting power supplies in regions around.

Nations like Kazakhstan and China among others are proactively busting illegal crypto mining hubs in their regions.

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Further reading: Cryptocurrency, Argentina, Crypto Mining, Serodino

Radhika Parashar

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Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More