South Korea’s Commons Foundation To Build Largest Bitcoin Mining Farm And Crypto Exchange In Paraguay
The Blockchain Technology Foundation also called the “Commons Foundation,” and the government of Paraguay recently signed an agreement that sets in motion plans to establish the world’s largest mining farm.
A press release confirming the agreement states that the “Commons Foundation” will undertake to construct its “Golden Goose Project” in Ciudad Del Este, one of Paraguay’s main cities.
Building the largest Bitcoin mining center
As per the contract, the Paraguayan government has agreed to provide certain concessions to facilitate the project. They include providing five land plots totaling 50 square kilometers near the iconic ‘Itaipu’ Hydroelectric Power Plant.
Also included is the guarantee to avail cheap and stable-priced electricity for 15 years.
The Commons Foundation is based in South Korea but could have been drawn to Paraguay due to its abundant clean energy supply. Paraguay is arguably the globe’s leading producer of renewable energy, with the nation’s entire electricity needs met from its super hydroelectric dams.
Paraguay’s Itaipu Hydroelectric Power Plant is dubbed the “most significant” around the world, capable of comfortably producing 103 TW annually. However, the country consumes only 20 percent of this power, with the rest being exported.
The chairman of the South Korea based foundation, Choi Yong-Kwan, expressed optimism about their project’s success. He noted that Paraguay does not only have economic advantages but also offers the best eco-friendly alternative.
With nearly 80 percent of electricity available, Choi noted that it gives them an opportunity to “build the world’s largest mining center” utilizing the country’s “low-cost and abundant clean energy.”
More importantly, the government will establish laws that will make it easy for the foundation to run businesses related to the mining farm such as a crypto exchange.
Paraguay to support project via potential constitutional revisions
During the contract signing ceremony, the Blockchain Technology Foundation said that it would launch its projects via a number of pre-sales offered in what the firm calls ‘Initial Exchange Offerings (IEO).’
Modeled on the popular ICO style, the IEOs will be conducted under Paraguayan laws.
Proposed funding methods to be adopted during the exchange offering will include the use of MicroBitcoin (MBC), Bitcoin (BTC), and Ethereum (ETH).
In its press release, the Commons Foundation notes that all project participants will receive daily profits amounting to 30 percent from mining and 70 percent from the exchange.
Token holders will receive their daily profits allocations in MicroBitcoin, a cryptocurrency backed by the CF and which is tradable against USD on a number of exchanges around the world.
Paraguay’s vice president Hugo Velasquez Moreno assured the Commons Foundation of the government’s support, saying:
“The Paraguay government will actively support the Commons Foundation’s ‘Golden Goose project’ and provide tax breaks through constitutional revisions.”
Revising the country’s constitution to allow for tax breaks for the project is an interesting point, but if done, it would constitute a big step forward for cryptocurrencies. It would likely see digital assets gain legal status in the country- thus opening up the blockchain ecosystem in the rest of South America.
Disclaimer: This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.