We have reported many times that South America is one of the biggest proponents of crypto adoption. However, this trend is apparent only on the low economic level, since the vast majority of crypto users are low-income individuals who want to hedge against their falling fiat currencies. Peruvians, Argentinians, and Venezuelans have been quite bullish on crypto with trading volumes increasing consistently in these countries.
Now, Argentina will be an even bigger adopter with YPF, the local state-owned energy producer, moving into the mining industry.
Argentina has impressive resources to fuel its mining industry
After the collapse of mining operations in China at the end of spring, many people thought that countries like Peru and Chili would become havens for miners running away from increasing energy costs and governmental bans in Asia. These countries have immense potential to develop their hydro energy and can produce excess power that could be utilized for mining.
YPF Luz, the branch of the company focused on renewables, wants to dedicate at least 1 MW of power for a pilot operation that will focus on Bitcoin mining. The power will be derived from gas resulting from oil processing. If this operation is at least semi-profitable, the company plans to expand its efforts to launch another pilot with 8 MW dedicated to it from the same source.
Also read:The same idea of utilizing waste gas to mine BTC is already employed by Crusoe Energy which is a private corporation from the US that deploys its mining equipment in Oman and Abu Dhabi.
South America is catching up to other countries
The rate of crypto adoption in South America is quite impressive. However, it is still behind other macro regions like Sub-Saharan Africa in terms of using cryptocurrencies in retail or Europe in terms of trading volumes and regulations. Many countries, including Argentina, are struggling to provide their citizens with opportunities for earning more money or reducing expenses related to social services and necessities.
Only developed countries can truly expect to not only adopt crypto but also focus on cleaner mining.
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