Buenos Aires Will Run Ethereum Validators Starting in 2023

Buenos Aires will become one of the first public entities in the world to help run Ethereums network infrastructure, a city official announced during Argentinas ETHLatam conference last week.

Private companies will contract with the city to deploy validator nodes computers running Ethereum client software which are slated to be installed next year. 

The validators, which are responsible for storing data, processing transactions and adding new blocks to the blockchain, will become part of the proof-of-stake network consensus system being implemented in conjunction with the Merge, expected to occur in mid-September.

The citys secretary of innovation and digital transformation, Diego Fernndez, didnt disclose how many nodes would be deployed during last weeks announcement, but each validator requires a stake of 32 ether to operate (currently valued at about $60,300).

The city councils investment will be conducted within the regulatory sandbox created in early 2021 by the Buenos Aires legislative branch. The citys data centers will host the nodes.

Fernndez, a crypto enthusiast, told Coindesk that the citys decision has exploratory and regulatory purposes that will help develop adaptable [crypto] regulation.

Once regarded as a crypto-friendly country, Argentinas stance on digital assets has since shifted, although perhaps involuntarily the International Monetary Fund (IMF) in May reportedly pressured the countrys central bank to ban unregulated crypto transactions in traditional banks.

However, the countrys capital has continued to look favorably upon the nascent space. Buenos Aires Mayor Horacio Rodrguez Larreta in April announced that local citizens would be able to pay taxes using cryptocurrencies. He later elaborated, explaining that the process would be handled by crypto companies, as the local government itself can only accept Argentine pesos.

Argentines rank among the worlds top adopters of digital assets, in part due to persistently high inflation in the South American country, alongside the yearslong devaluation of the local peso. Locals, in turn, have started investing in crypto to protect their savings from losing purchasing power.

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