Blockchain and e-commerce firm Future FinTech Group Inc. is looking to build a new crypto mining farm in the South American nation of Paraguay.
Future FinTech Brings Crypto Mining to South America
The country’s minister of social development and the mayor of the city of Coronel Oviedo announced that they’ve had discussions with many of the firm’s executives regarding the development of its plans and the proposed site. In addition, the former deputy minister of national energy Emilio Buongermini will serve as a consultant on the project and to Future FinTech to assist in mining growth within Paraguay’s borders.
Shanchun Huang – the chief executive of Future FinTech – explained in a statement:
We have had very encouraging discussions with officials of Paraguay, and we understand that there has been a marked increase in cryptocurrency mining activities in Paraguay in 2021 due to its favorable business policies and competitive energy prices. An important feature of cryptocurrency mining in Paraguay is that it could be powered by hydroelectric environmentally friendly clean energy since Paraguay has abundant hydroelectric power resources as its ITAIPU hydroelectric dam is one of the largest hydroelectric dams in the world, with an installed generation capacity of 14 gigawatts.
The crypto mining sector has been at the center of some controversy in recent months. For example, several reports have been published regarding the emissions produced through crypto mining and about how they allegedly are higher than those produced by certain countries.
Several industry heads have also taken issue with mining emissions. Elon Musk – the CEO of Tesla – initially wanted to permit bitcoin payments for electric vehicles, but ultimately went back on this decision only a few weeks later after he decided that miners were not careful enough with the energy that they used to extract bitcoin, and that he couldn’t push the bitcoin agenda unless emissions fell.
The World of Crypto Is Growing in Latin Countries
Huang assured listeners that Paraguay is quite excited about the new project and about crypto in general given how supportive regulators have been. He stated:
Given the government of Paraguay’s support for the cryptocurrency mining business, as well as our commitment to the space, we plan to carefully assess this development opportunity in Paraguay. We will work with our local consultant to review Paraguay’s hydroelectric power and clean energy resources, locations for developing a mining farm and the preferential policy treatment that we might receive for our capital investment. We will plan upon providing updates to our shareholders with additional information regarding this potentially important development for the company.
Crypto has a growing presence in Latin America, with arguably the biggest story in recent months stemming from El Salvador. The nation has become the first to dub bitcoin legal tender, meaning customers are fully allowed to use the asset to purchase goods and services as they would with fiat.