The commune of Serodino in the Argentine province of Santa Fe has decided to start mining cryptocurrencies to promote economic development. Ambito reports it.
According to the head of the municipality, Juan Pio Drovetta, the village of six thousand people is facing financial difficulties, and the authorities have decided to turn to the knowledge economy. So they came up with 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 cooperation with financial and human resources,” he said.
Drovetta explained that the project would begin with purchasing a six-card farm with municipal funds and business investment. The mined digital assets are supposed to be sold immediately. The leader of the commune did not specify which cryptocurrencies were being mined.
“This is a pilot from whom we will be able to receive 60,000-70,000 pesos (~$532-$621) per month, depending on fluctuations [of the exchange rate],” he said.
The head of Serodino said that the funds are planned to be used to modernize the railway infrastructure of the village and restore communication with the nearest settlements. The station began operation after 35 years of inactivity.
He clarified that to pay taxes, the municipality consulted with specialists since cryptocurrencies in Argentina are not regulated.
Regarding the business risk of the mining project, Drovetta stated:
“You need to understand that we do not plan to buy cryptocurrency in order to earn money. Generating it is another matter, here we always win.”
Recall that the Argentine Parliament approved a $45 billion debt refinancing project to the IMF in March. The proposal includes a ban on the circulation of digital assets in the country.