Argentina is becoming the next hub of bitcoin mining, thanks to subsidized electricity. The South American country, plagued by economic misfortune, is seeing bitcoin as a way out of unemployment and economic turmoil.

The shift comes at the heels of China’s crackdown on bitcoin miners, which has compounded the crash of the cryptocurrency market.

Ezequiel Fernandez, an analyst at Balanz Capital Valores in Buenos Aires said that although Argentina is a net importer of gas, consumer electricity bills are only about 2 percent to 3 percent of an average monthly income, compared to about twice that in other Latin American markets like Brazil, Colombia or Chile.

The cheap electricity is thus offering a lifeline to Chinese miners who have been forced to shut down. International mining firms are also seeing opportunities in Argentina. SCMP reported that last month, Canada’s Bitfarms said it secured a deal to tap directly into a local power plant to draw as much as 210 megawatts of natural gas-powered electricity, in a bid to run what would be the largest bitcoin-mining facility in South America.

“We were looking for places that have overbuilt their electrical generation systems,” Bitfarms president Geoffrey Morphy said in an interview. “Economic activity in Argentina is down, and power is not being fully utilized. So it was a win-win situation.”

Argentina has been battling to stay afloat amidst cyclical economic crises, including repeat currency devaluations, defaults, hyperinflation, and now, a three-year recession aggravated by the pandemic.

To cushion the harsh economic realities it brings on the people, the government subsidizes electricity. Industrial customers not connected to the local grid pay as low as $0.06 per kilowatt hour, a mouthwatering deal that many firms outside South America are now seeking to be part of.

“Even after bitcoin’s price correction, the cost of electricity for anyone mining from their house is still a fraction of the total revenue generated,” said Nicolas Bourbon, who has experience mining digital currencies from Buenos Aires.

But some of the crypto miners want a cheaper deal. Bitfarm said it wants a deal of $0.022 cents per kilowatt hour, below the wholesale market rate.

“We were looking for places that have overbuilt their electrical generation systems,” Bitfarms president Geoffrey Morphy said in an interview. “Economic activity in Argentina is down, and power is not being fully utilized. So it was a win-win situation.”

Less industrial activities in Argentina means more electricity will be available for consumption. Heavy economic activities in China pushed early attempts by the government to wrestle power consumption back to normal from bitcoin miners before the crackdown.

“For certain power generators with easy access to gas, selling excess power to bitcoin miners during part of the year makes sense, especially if the power generator somehow avoids foreign-exchange controls by getting paid in hard dollars outside of Argentina, or in bitcoin,” Fernandez said.

As China zealously escalates its crackdown on bitcoin mining, disrupting the pool that was for years a pillar of the cryptocurrency market, affected miners are exploring their choices which lie with countries with cheap electricity similar to China.

The Southeast Asian country boasts of cheap electricity powered by coal, but industrialization has put consumption on high, limiting how much the government can tolerate for crypto miners.

For Argentina, it opens the gateway to economic sustenance that the government can’t provide. The value of bitcoin in Argentina has been on the rise to almost 5.9 million pesos in unofficial markets as of Sunday, versus about 3.4 million pesos at the official rate, paving way for higher returns when the cryptocurrency market bounces back.

Brussels has proposed lifting all quarantine obligations on those who are fully vaccinated against Covid-19 in the EU, giving them the freedom to enjoy the summer holiday season, starting July 1. The Guardian has the story.

From Tuesday, a system will be ready to allow member states to issue a digital Covid passport to citizens proving their status and freeing them up to travel.

With infection rates on a downward trajectory across the bloc, a deadline has been set for 1 July for all 27 EU countries to accept the documentation as sufficient proof of vaccination for restrictions to be lifted.

A negative test or proof of having recovered from infection will confer the same rights on the holder of a certificate. The European Commission has proposed a standard validity period for tests: 72 hours before travel for PCR tests and 48 hours for rapid antigen tests.

The children of those who are fully vaccinated will also be exempt from quarantine under the proposal and as a minimum no one under six years of age will need to take a test. Many countries are likely to set a higher age threshold for the testing of minors.

The intention is that fully vaccinated UK travelers will benefit from the Covid passport system but, in light of the emerging variant first identified in India, EU governments may still impose restrictions on people arriving from the UK including testing and quarantine obligations.

From Monday, entry to France has been limited to EU nationals, French residents, and those travelling for essential purposes. People arriving from the UK must have tested negative and quarantine for seven days.

While a sudden deterioration in the Covid infection rates in the EU could lead to the use of an “emergency brake” on the lifting of restrictions within the bloc, the intention is to reintroduce free movement as the summer tourism season begins.

Ursula von der Leyen, the commission president, tweeted: “Europeans should enjoy a safe and relaxing summer. As vaccination progresses, we propose to gradually ease travel measures in a coordinated way with our common tool: the EU digital covid certificate. It will bring clarity and predictability as we resume free travel in the EU”.

In addition to the lifting of quarantine on the fully vaccinated from 1 July, the commission has proposed that anyone coming from a “green” region of the EU, such as west Finland, where less than 25 cases per 100,000 people have been recorded during the previous 14 days, should be entirely freed from restrictions.

Those who are not fully vaccinated coming from an “orange” area, with a 14-day cumulative Covid-19 case notification rate of 75, will need to take a pre-departure test.

Didier Reynders, the European commissioner for justice, said: “The last weeks have brought a continuous downward trend in infection numbers, showing the success of the vaccination campaigns across the EU.

“In parallel, we are also encouraging affordable and widely available testing possibilities. In this context, member states are now slowly lifting Covid-19 restrictions both domestically and regarding travel.”

The UK is yet to be added to a “white list” of non-EU countries from where the EU recommends that unvaccinated travelers may safely be permitted to enter the bloc for non-essential reasons. Despite the delay, countries including Portugal have opened their doors to British tourists.

The decision will likely boost economic activities in the bloc and increase its chances of returning to pre pandemic economic status.

So far, only seven countries led by China have been able to return their GDP per capita to pre-pandemic standing, according to a recent report from the Organization for Economic Cooperation and Development. Others include Turkey, Lithuania, Ireland, Korea, Russia and the US.

Economic recovery has been based mainly on the effectiveness of COVID-19 safety measures and vaccine roll out. With the recent decline in number of infections in the EU, the bloc is gunning for full economic recovery, making moves that will buoy tourism, a huge source of its economic growth.