Argentinian town to invest in crypto mining to fight inflation, upgrade rail infra
Sorradino's mayor claims there is no risk in crypto mining if the digital currencies are sold immediately
By Shashank Bhardwaj
As part of its effort to upgrade its rail infrastructure, the town of Sorradino in Argentina's Santa Fe Province may soon begin mining cryptocurrency. The town's mayor claims that they will also pay taxes using the mining profits.
The 6000-person town has already acquired six graphics cards and will be purchasing a mining rig shortly, according to local media. Juan Pio Drovetta, the mayor of Sorradino, said the cryptocurrency mining plan was backed by the local community. The mayor believes there is no risk in mining digital currencies if they can be sold immediately and stated that so far, "there is no regulation because it is a new process.”
Sorradino, like many other rural towns in Argentina, was heavily impacted by the Covid-19 pandemic and the resulting inflation. It has been struggling to pay for an upgrade to its rail infrastructure, which was reopened for the first time in 33 years last year.
“We are going through complex situations, the Tucuman train stopped after 35 years and we want the commuter train like Cañada-Rosario, Gálvez-Rosario, and all that line. For that, we must work and see how we can collaborate to improve this and try to bring knowledge, labour, and new technologies”, Drovetta said. The new upgrade is also expected to include investments that will connect Sorradino to nearby major cities.
Although the mayor did not specify which coins will be mined in Sorradino, he highlighted that no direct purchase of crypto assets is planned. “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”, the mayor said.
While this is undoubtedly a desperate attempt by the town to revive its economy, it's worth noting that small towns like these are often the ones most hit during economic and financial crises. Crypto could bring in new opportunities, and mining could create new jobs, especially in a country like Argentina, which has a history of defaulting on its debts and inflating its currency. If the mining operation succeeds, Sorradino could create a precedent for direct community involvement in crypto mining.
The writer is a founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist.