In a major event, the government of Paraguay has partnered with The Blockchain Technology Foundation, also known as the Commons Foundation, to build the world’s largest cryptocurrency exchange and Bitcoin mining farm.
Both the entities have signed an agreement to drive the cryptocurrency mining industry in the country by constructing the world’s largest mining farm. The Blockchain Technology Foundation based in South Korea, has secured a deal with Paraguay to explore the potential of the power grid for five years.
According to a press release from the “Commons Foundation”, “Golden Goose” project will be implemented in one of the main cities of the country, Ciudad del Este.
As per the contract, the Paraguayan government will provide a plot of land of approximately 50 square kilometres at discounted rates. The plot is located near Itaipu Hydroelectric Power Plant which is the world’s largest clean energy plant.
The chairman of the Commons Foundation, Choi Yong-Kwan, was quite optimistic about the agreement and stressed that this is not only an essential economic factor, but it would also serve as an eco-friendly alternative for the crypto mining industry.
Choi said, “Only 10 to 20 per cent of electricity is produced at Itaipu hydroelectric plant and consumed in Paraguay. More than 80 per cent of its electricity is exported overseas. We will build the world’s largest mining centre in Paraguay using low-cost and abundant clean energy.”
It is expected that The Blockchain Foundation will carry out an Initial Coin Offering (ICO) to fund the project. The ICO model is based on 30 per cent of mining profits and 70 per cent of exchange profits daily to token holders. They will be paid in MicroBitcoin (MBC), a little-known cryptocurrency.
However, in order to be in line with the laws of the country, the government will need to do some constitutional revisions.
Speaking on this, the vice president of Paraguay, Hugo Velázquez Moreno, assured that the government will not only provide the contractual support to the Foundation, but they are also hopeful that they will be able to adapt the constitution to accommodate this new industry.
In other words, the constitutional revisions will provide tax breaks to acknowledge the legal status of the ICO and the crypto.
Moreno said that the nation is quite positive about the project. In his words: “The Paraguay government will actively support the Commons Foundation’s ‘Golden Goose project’.”
Mr Yong-Kwan further said that “We will create a new world-class ecosystem through ‘Golden Goose project,’ which is the world’s largest cryptocurrency mining centre and the world’s largest cryptocurrency exchange.”
Hydroelectric Dams Produce Clean Energy for the Country
Paraguay is an active user of renewable energy, and hydroelectric dams meet most of its energy requirements. Itaipu hydroelectric power plants is one of the popular hydroelectric power plant of the world and accounts to an annual output of 103 TW. The country only consumes 20% of the power that is produced, and the rest is exported to Brazil.