Paraguay backs creation of 'world's largest' bitcoin mine

The Blockchain Technology Foundation, also known as the Commons Foundation, recently concluded negotiations with the Paraguayan government to establish “the world’s largest bitcoin mining farm and crypto exchange,” CCN reported Nov. 26. The foundation was established in South Korea and is also known as the Commons Foundation.

Regarding the negotiation results, Paraguayan Vice President Hugo Velazquez Moreno said that the Paraguayan government will actively support the foundation's plan and provide tax exemptions for digital currencies through constitutional amendments. Even recognizing the existence and legal status of cryptocurrencies will be a major breakthrough for cryptocurrencies at the global level.

Paraguay has developed renewable energy, and all its electricity comes from hydroelectric dams. The Itaipu Dam, built by Brazil and Paraguay, has an annual output of 103 tons and is the second largest hydroelectric power station in the world. Currently, the country consumes only 20% of the national electricity, and the rest is exported. The abundant local electricity energy provides abundant electricity for mining.

Because Paraguay’s power grid is nationalized, the South Korean blockchain technology foundation negotiated a deal with the government for at least five years, making any deal the foundation gets in South Korea about 80 percent cheaper.

At the same time, the Paraguayan government will provide five plots of land with a total area of ​​50,000 square meters to launch the project called "Golden Goose", which is said to be the world's largest Bitcoin exchange and cryptocurrency mining farm.

Blockchain technology and cryptocurrency transactions are developing rapidly in Europe, Asia, North America, and even Africa, but the South American economy is underdeveloped and many countries are facing serious problems of corruption and economic instability, so overall development is relatively slow.

Paraguay's active investment in mining is an effective use of local energy and an exploration of the blockchain industry. Although there are fewer constraints on the development of the mining industry in Paraguay, active support is needed to achieve great development.