Paraguay could become a cryptocurrency mining hub in the near future. The government of Paraguay signed an agreement with the Blockchain Technology Foundation “Commons Foundation,” which could be the starting point to build the world’s largest crypto mining farm. The information was released by the “Commons Foundation” a few days ago.
Paraguay’s Crypto Mining Hub
Paraguay wants to become a crypto mining hub, not only in America but also around the world. In a press release, Commons Foundation announced at the beginning of the month a contract to establish ‘the world’s largest cryptocurrency mining centre’ in Ciudad del Este. The contract was supported by the government.
With this agreement, there will be five mining centres close to the ‘Itaipu’ Hydroelectric Power Plant. Moreover, the partnership includes stable electricity prices for 15 years. It also contemplates the installation of high-speed Internet networks and the establishment of laws for all related businesses for this project.
Choi Yong-Kwan, Chairman of the Commons Foundation, said about the agreement:
“Only 10 to 20 per cent of electricity is produced at Itaipu hydroelectric plant and consumed in Paraguay. More than 80 per cent of its electricity is exported overseas. We will build the world’s largest mining centre in Paraguay using low-cost and abundant clean energy.”
The plans of the foundation include a virtual currency exchange. The intention is to use MicroBicoin (MBC), an open-source project which the Foundation contributes to with profits generated by the exchange and the crypto mining activities.
With the support of the government of Paraguay, the Foundation will be conducting a pre-sale and an IEO (InitialExchange Offering). The government of Paraguay will be giving tax breaks through constitutional revisions, according to Hugo Velazquez Moreno, vice president of the country.
Choi Yong-Kwan explains that they will be creating a new world-class ecosystem through this project known as ‘Golden Goose.’
Cryptocurrency miners tend to be located in places with low electricity costs and cold temperatures. Although Paraguay does not have the cold winters as other countries have, it provides cheap and clean electricity through the Itaipu Hydroelectric Power Plant.
Laurence Blair, Journalist at BBC, the Guardian and The Economist, wrote a Tweet in which he shows mining farms already operating in Ciudad del Este.
Paraguay wants to find a place in the South American market for Bitcoin, cryptocurrencies and blockchain technology.