Latam Insights — Volcano Energy Bitcoin Mining Project Rises in El Salvador, Venezuelan Miners Leaving Amidst Crypto Corruption Probe

Welcome to Latam Insights, a compendium of Latin America’s most relevant crypto and economic news during the last week. In this issue, Volcano Energy rises in El Salvador, Venezuelan bitcoin miners flee amidst nationwide mining ban, and Argentina deepens usage of the Chinese yuan to pay imports.

Volcano Energy Green Mining Project Rises out of Stealth in El Salvador

Volcano Energy, a bitcoin mining project, announced the construction of a 241MW renewable power generation facility in El Salvador. The operation, which will get most of its energy using photovoltaic (solar) cells, will power what it calls “one of the world’s largest bitcoin mining farms,” with a mining processing capacity of 1.3 EH/s in its first stage.

The cost of the whole development is estimated to reach $1 billion, with the first phase of $250 million being financed by “Bitcoin industry leaders.” Tether is among the companies participating in the project as part of its recently announced mining and renewable energy investment expansion policy.

Paolo Ardoino, CTO of Tether, stated:

Volcano Energy represents one of the most ground-breaking and strategic initiatives we are investing in and we look forward to working alongside Josue Lopez [Volcano Energy’s CEO] and his team to make El Salvador a global force in renewable energy production.

Bitcoin Miners Leaving Venezuela Amidst National Mining Ban

Venezuelan bitcoin miners are looking to relocate their operations to other countries in Latam due to the nationwide mining ban that the government enacted after the intervention of the Venezuelan crypto watchdog Sunacrip. The institution was allegedly involved in a $20 billion corruption scheme.

An anonymous miner told Criptonoticias that he is looking to move his 2,000 ASIC mining rigs to Paraguay, stating that it had one of the “cheapest electricity rates in Latin America and it is a country that has open arms for bitcoin miners to whom it is not imposing restrictions.”

Other miners are considering moving their bitcoin mining operation out of Venezuela, taking them to Paraguay and El Salvador.

Argentina Registers Increase in Usage of Chinese Yuan for International Settlements

Argentine companies are embracing the Chinese yuan for settling cross-border payments to save U.S. dollars. According to general customs director Guillermo Michel, more than 500 companies have shifted to pay for imports with Chinese yuan after the Argentine government introduced dollar-like protections to the currency in the financial system.

Out of the almost $10 billion available as part of the Chinese swap line, there are currently more than $2 billion in payments awaiting approval.

To follow all the latest developments in crypto and the economy in Latin America, sign up for our Latam newsletter below.

What do you think about this week’s Latam Insights report? Tell us in the comment section below.