Paraguay to Become Home to World's Largest Mining Farm
The Paraguay government and South Korean-based Blockchain Technology Foundation have agreed to build a mining farm that will become the largest crypto mining center in the world.
This month Paraguay’s government and "Commons Foundation," a South Korean-based firm, signed an agreement to construct a bitcoin mining farm that is designed to become the largest crypto mining center in the world in terms of the area it will cover - about 50,000 square meters.
The new project, called the "Golden Goose", also includes the establishment in the country of a global crypto exchange, according to the official press release.
The center will be built in Ciudad del Este, a big city located nearby the Itaipu Hydroelectric Power Plant, one of the world's largest clean energy plants, which will ensure a continuous supply of cheap energy.
The news might not come as a surprise given the fact Paraguay is known for its vast electricity surplus resulting from the country's vast resources of renewable energy. National hydroelectric dams produce so much power that Paraguay can consume only 20 percent of it.
Accordingly, the Paraguayan government decided to combine its cheap and abundant supplies of clean energy with the expertise of the Commons Foundation in innovative blockchain technology. Under the agreement, Paraguay has committed to provide the Foundation with five plots of land with total area of approximately 50,000 square meters to construct mining centers and related infrastructure near the Itaipu Hydroelectric Power Plant.
Moreover, it guaranteed a 15-year period of stable, competitively-priced electricity, which is about one-fifth of that in South Korea.
In a perhaps more significant move, the Paraguay authorities declared their readiness even to revise the country's constitution and make the necessary legislative amendments to adapt them to the nascent crypto industry and legalize activities related to crypto assets.
"The Paraguay government will actively support the Commons Foundation's 'Golden Goose project' and provide tax breaks through constitutional revisions," commented Hugo Velazquez Moreno, vice president of Paraguay, according to the press release.
If this does happen, that will signal a major breakthrough for the crypto community.
Encouraged by such governmental support, Choi Yong-Kwan, Chairman of the Commons Foundation, in his turn promised to create "a new world-class ecosystem" in the country and also stressed the environment-friendly nature of the project.
The "Golden Goose" project aims to raise some funding via the ICO model by offering investors its tokens. Token holders are promised to receive both mining and exchange profits which will be paid on a daily basis in MicroBitcoins, a currency present at the moment on several exchanges.
However, no exact timeline for a token offering or the general project development was stated in the press release.
Although Paraguay is generally off the radar regarding cryptocurrencies, this latest move might draw the attention of the crypto community to it. With the plummeting crypto assets prices and high expenses that miners have to bear, the topic of low-cost mining is getting increasingly hot, especially considering recent developments in the industry.
For instance, Norway has recently announced it's scrapping the electricity subsidy previously granted to crypto miners, and such news will force them to search for new - and preferably eco-friendly - sources of power.