As the government across the world ramp up their crackdown against the crypto miners, Argentina has recorded a surge in the mining activities, thanks to its highly subsidized electricity. Plus, with the lack of regulation on the local crypto market, the miners can sell their digital tokens at a higher exchange rate.
Besides that, amidst the growing inflation in the Latin American country, the government has imposed capital controls and forbidden its residents to exchange not more than $206 for their native currency. Experts suggest that people are now shifting towards crypto to increase their buying power and counter inflation.
As per the latest report by Bloomberg, the electricity rates in the country are so subsidized that despite the recent price crash, the miners were in the green. Interestingly, the growing mining activity in Argentina has also attracted the attention of the big mining firms, including Canadian Bitfarm.
Reportedly, Bitfarm has also agreed to mine crypto-tokens using the power from the local power plants. The company’s top official, Geoffrey Morphy, said,
We were looking for places that have overbuilt their electrical generation systems. Economic activity in Argentina is down, and power is not being fully utilized. So it was a win-win situation.
The Latin American country became the latest country to join the crypto mining boom to gain more financial freedom for its citizens amidst worsening inflation and economic crisis. But experts suggest that the rising mining activities could affect the grid’s integrity.
On the other hand, Venezuela and Iran are two other countries, which have adopted cryptocurrencies to avoid international sanctions.
In Iran, government-licensed miners are allowed to mine digital assets, but reportedly, more than 85 percent remain unlicensed. But amid growing power shortages, the Tehranian regime has halted mining activities for a few months.