On the second day of the fifth edition of Blockchain Summit Latam 2021, the experts addressed in their second session scheduled for today, the “News of the mining on Latin America”.
During 35 minutes designed to debate, the discussion was carried out on the contrast that exists between some states in the region that support the mining activity of bitcoin and of those states that repress this activity. In addition, the regulatory framework of Latin America in mining and the feasibility of carrying out the activity in the region.
Lila Alves, content creator, was in charge of moderating the space, accompanied by panelists AnĂbal Garrido, crypto finance consultant, Juan JosĂ© Pinto, founder of Doctorminer and Alejandro de la Torre, vice president of Poolin.
The space was framed within the context of the approval of bitcoin as legal tender in El Salvador, which motivated the panelists to make the contrast that currently exists in some countries on mining activity, and in the particular case of China, on the prohibition of this activity within its territory and the positive and negative repercussions that these actions could bring to the continent Latin American.
Along these lines, Alejandro de la Torre, Vice President of Poolin, stated that this situation of prohibition of mining in the Asian country, which generates is an expansion of this activity worldwide, and adds that it has a positive impact for bitcoin , Since the cryptomoney now it will have a mining infrastructure that will be present in many other countries.
Likewise, AnĂbal Garrido agrees that the foregoing has a positive impact, especially for those who carry out this activity, since it is a wake-up call to take into account that mining is an activity that must be carried out in regions where it is not seen in risk the practice of this action, nor the people who invest in it. This event showed that “Bitcoin is a free, secure and decentralized currency, which resists any attack”.
For his part, and under this same context, Juan José Pinto, believes that this action leaves as a lesson the diversification and distribution of operations throughout the world, including Latin America.
“We miners should not depend on the state, I do not trust any state or government, no matter how many regulations they may give you, something can always happen (…) the lesson in that case is to diversify, not to concentrate all operations in one only place, due to the instability that exists with respect to the regulatory level ”, affirmed the founder of Doctorminer.
In this second debate, the normative and regulatory framework of mining activity in Latin America was addressed, where the position that El Salvador is currently taking against bitcoin was highlighted, they assured that although there are regions such as Venezuela, Paraguay, and Panama, the latter which is currently working on it, the regulatory framework for mining in the continent is still very uncertain. They consider that the important thing is to maintain diversified networks in different regions, in case the government prohibits the performance of the activity in that country.
In addition, they agreed that the activity needs minimum requirements to operate, and that the establishment of a legal framework is key to provide legal guarantees to miners and to attract potential investors.
Finally, they made it clear that censorship of bitcoin transactions by the state is impossible, and they assured that Latin America has regions such as Venezuela, Paraguay and Argentina, with great energy potential, where this activity is carried out.
To close the presentation, the panelists gave their impressions on the cost-benefit of practicing this activity in Latin America, where they added that to carry out this activity certain conditions must be taken into account that will guarantee the effectiveness of the practice and one of they are the energetic part.
They also stated that this activity can generate new sources of jobs and new models of electricity generation, which lead to providing an extra income to the nations where these mining farms are developed.
“Energetically, Latin America has potential (…) it is the one that has the most that power remains to be exploited ”, said Juan José Pinto, founder of Doctorminer.
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