Argentina has been hopping from one economic crisis to another since the beginning of the century. Long-time destroyers of hopes and dreams, financial hurdles are nonetheless unable to destroy the Argentinian determination to persevere.
Blockchain was introduced to the country as the underlying technology of cryptocurrencies, a much-needed hedge to survive the inflation ravaging the nation. Now, Argentina is using the technology to achieve more than just survival.
Blockchain For Sustainable Development
This week, a cheap (partial) solution to a very expensive problem was introduced by one of the country’s oil producers, Teceptrol.
According to the firm’s CEO, with a small investment in mining equipment, the isolated plant of Los Toldos 2 Este will start employing gas by-products to mine cryptocurrencies by the end of October.
Production of crude oil has been limited to 25% of the total capacity due to the inadequate infrastructure to extract the gases generated in the production process.
By using the oil by-products to mine crypto, Teceptrol will be able to increase production while avoiding releasing polluting gases into the atmosphere.
Blockchain Against Inefficient Government Services
Meanwhile in the north of the country, the capital city of Buenos Aires has announced that it will make self-sovereign digital identities available to its citizens.
Starting in October, the 15 million residents of the capital can access birth and marriage certificates stored in a QuarkID wallet, a protocol supported by Ethereum-layer 2 solution zkSync Era and developed by Argentinian firm Extrimian.
In November, proof of income and academic verification documents will also be included in the wallet, with the scheme eventually expanding to the rest of the country.
By introducing digital identity for its citizens, Buenos Aires is able to reduce the budget of its bureaucratic apparatus while at the same time increasing security and transparency in the online lives of portuñenos.
Making "Something" In a Bad Situation
In the past years, the poverty rate has been increasing in South America's second-largest economy. In the first six months of the year, it reached 40.1% due to a 30-year record-high annual inflation of 124%, severe drought, and a national debt that, although restructured by the IMF last year, keeps on stubbornly increasing.
With the present moment’s pressing needs demanding so much attention, it has been an uphill battle to invest in the country’s future. And this is where blockchain comes in.
Blockchain by itself won't solve Argentina's profound economic crisis, but as a technology that increases efficiency, transparency, and security, it offers solutions that satisfy new needs while solving old problems. Giving Argentinians a chance not only to survive but also to prosper.