The town of Sorradino in Argentina’s Santa Fe Province may start mining cryptocurrency in order to earn funds for train infrastructure upgrades. Its mayor believes there is no danger in mining digital currency that can be traded right away.
To minimize price instability, a 6000-strong group intends to collect revenue by selling the mined cryptocurrency right away.
According to local media, the 6000-person town has already acquired six graphics cards and will be purchasing a mining setup in the near future. The plan to mine cryptocurrency was backed by the local population, according to Sorradino mayor Juan Pio Drovetta.
Sorradino, like many other rural towns in Argentina, was heavily struck by the COVID-19 epidemic and the ensuing inflation, and is still struggling to pay for an overhaul of its train infrastructure, which was reopened for the first time in 33 years last year. The renovation will also include rail investments that will connect Sorradino to adjacent major cities.
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Drovetta anticipated that the town’s planned mining activity would bring in several hundred dollars per month. The mayor made no mention of the coins that will be mined at Sorradino. In response to concerns about the price volatility of crypto assets, he stated that, while no direct purchase of crypto is planned, mining remains a secure investment option:
We aren’t investing in cryptocurrencies to profit from a speculative move in which we may [either] gain or lose money. We’ll be in the forefront since we’ll be producing currency.
Drovetta also stated that the municipality intends to pay taxes on its mining profits, stating that she has already conducted the necessary investigation.
The town of Sorradino in Argentina’s Santa Fe Province might create a precedent for direct community participation in crypto mining if it begins mining operations. It is far more usual to see organized mining players buying power capacity in small towns, such as Bitmain in Rockdale, Texas, or even central governments trying to build mining cities from the ground up, such as the renowned Salvadoran proposal “Bitcoin City.”