Recently, there have been rumors of Paraguay teaming up with the Blockchain Technology Foundation, also known as the Commons Foundation, to construct and manage the world’s largest crypto mining farm and exchange.
The South Korean-based company announced the partnership and new project, the Golden Goose, will take place in tourism center Ciudad del Este. The location allows close proximity to the largest hydroelectric dam in the world. The Itaipu Dam is one of many that power the entire country of Paraguay. In fact, only 20 percent of energy produced within its borders is consumed locally, with the rest being exported.
These circumstances make Paraguay one of the world’s frontrunners in renewable energies. The Commons Foundation has secured a deal with the nationalized energy grid for competitively low pricing — many countries with renewable energy excess offer these kinds of rates to bring productivity and wealth to their countries. The rates are about 80 percent lower than what’s available in the company’s home country.
In addition to the energy deal, 50,000 square meters of land have been allocated for the construction of the facility, making it the largest mining operation to date.
“The Paraguay government will actively support the Commons Foundation’s Golden Goose project and provide tax breaks through constitutional revisions,” said Paraguayan Vice President Hugo Velázquez Moreno.
Constitutional recognition of cryptocurrency in Paraguay would be another big step for crypto. As governments around the world implement lasting legislation, crypto’s use cases and acceptance rate should increase.
To fund the project, an Initial Exchange Offering — modeled after ICOs — will be held. Token holders are promised 30 percent of mining profits and 70 percent of exchange profits. Payment will come in MicroBitcoin, a small-cap token valued at $0.000115 each.
With the largest mining operation opening up, it is clear that the time for innovation and creation is now as Bitcoin prices fall and innovators seek ways to reduce the overhead — especially energy costs — for miners.