Business Case: Launching a National Cryptocurrency Backed by Lithium and Mining Resources

Montevideo - Uruguay, Feb. 1st, 2025  

Preface

Through the management-on-demand consulting boutique iMB.Solutions and the tech network iMBdigital.Gallery_, we are involved in a sub-project for a North American strategic investor in blockchain infrastructure in the project for a national cryptocurrency as an official means of payment in Argentina. Some readers of the blog have already been following the published blogs on the iMB.Solutions website and via the GreyRhino newsletter (webpage iMB.Solutions and LinkedIn) since the beginning of 2024.

Below I would like to give you an overview of how the thinking on this is currently shaping up. The following business case is a text form reduced to the maximum, which is easily publishable at this moment.

Let's go!

Executive Summary

This business case outlines the proposal for a Latin American nation <Argentina> to create its own cryptocurrency <ARGCoin>, backed by its substantial lithium and mining resources. The initiative aims to leverage the country's rich natural resources to establish a stable and valuable digital currency <ARGCoin>, fostering economic growth, financial inclusion, and technological advancement.

Background

Latin America, particularly the "Lithium Triangle" (Chile, Argentina, Bolivia), holds over 60% of the world's lithium reserves. Lithium is a critical component in batteries for electric vehicles (EVs) and renewable energy storage, making it a highly valuable resource in the global market. The proposed cryptocurrency will be backed by these lithium reserves and other mining assets, ensuring its intrinsic value and stability.

Objectives

1. Economic Stability: Create a stable digital currency <ARGCoin> that can reduce inflation and provide a reliable store of value.
2. Financial Inclusion: Enhance access to financial services for unbanked and underbanked populations.
3. Technological Advancement: Promote blockchain 2.0/SmartContract technology and digital innovation within the country <Argentina>.
4. Global Competitiveness: Position the nation <Argentina> as a leader in the global cryptocurrency and lithium markets.

Market Analysis

The global demand for lithium is projected to increase significantly, driven by the growth of the EV market and renewable energy sectors. By backing the cryptocurrency with lithium, the nation <Argentina> can capitalize on this demand, ensuring the currency's value appreciates over time.

Strategic Plan

1. Resource Valuation: Conduct a comprehensive valuation of the nation's <Argentina> lithium and mining resources to determine the backing value of the cryptocurrency.
2. Blockchain Development: Develop a secure and scalable blockchain 2.0/SmartContract infrastructure to support the cryptocurrency <ARGCoin>.
3. Regulatory Framework: Establish a regulatory framework to govern the issuance, distribution, and use of the cryptocurrency <ARGCoin>, ensuring transparency and security.
4. Partnerships: Form strategic partnerships with international tech firms, financial institutions, and mining companies to support the <ARGCoin> cryptocurrency's development and adoption.
5. Public Awareness: Launch a public awareness campaign to educate citizens and businesses about the benefits and uses of the cryptocurrency.

Financial Projections

• Initial Investment: Estimated at US$500 million for blockchain 2.0/SmartContract development, regulatory setup, and initial resource valuation.
• Revenue Streams: Transaction fees, mining royalties, and potential appreciation of the <ARGCoin> cryptocurrency's value.
• ROI: Expected <ARGCoin> return on investment within 5 years, driven by increased adoption and rising lithium prices.

Risk Management

• Market Volatility: Mitigate through diversified backing with other mining resources and strategic reserves.
• Regulatory Risks: Address through proactive engagement with international regulatory bodies and compliance with global standards. Should be considered as critical as the nation <Argentina> is governed by a government with low consideration of Check & Balance. 
• Technological Risks: Ensure robust cybersecurity measures and continuous technological upgrades, one of the largest present concerns in the nation <Argentina> due to weak infrastructure and lack of professionals.

Conclusion

The creation of a national cryptocurrency backed by lithium and mining resources presents a unique opportunity for economic growth, financial inclusion, and technological leadership. By leveraging its natural resources, the nation <Argentina> can establish a stable and valuable digital currency <ARGCoin>, positioning itself at the forefront of the global cryptocurrency and lithium markets. The national central bank will cease its function with the introduction of the national cryptocurrency. (CryptoARGVault & FPN)

Meet the dynamic duo behind the innovative crypto currency project for Argentina: CryptoARGVault.

"SPCoder" hails from the dynamic city of São Paulo, Brazil. With a background in software engineering and a passion for blockchain technology, he brings a wealth of technical expertise to the table. SPCoder's journey into cryptocurrencies began during his university years, where he explored the intersection of finance and technology. He is driven by a vision of democratizing financial access and fostering economic empowerment through decentralized systems. SPCoder is particularly fascinated by the scalability and security aspects of blockchain technology. He enjoys delving into complex algorithms and smart contract development. Outside of work, SPCoder is an avid surfer and enjoys exploring new hiking trails in the South American wilderness.

"TangoTech" is a visionary young entrepreneur from Cordoba, Argentina. Her career in finance and economics laid the foundation for her deep understanding of the unique challenges faced by the Argentine economy. TangoTech believes in the potential of blockchain to reshape financial landscapes and empower individuals. Her interest in crypto stems from a desire to create inclusive financial solutions that can transcend geographical boundaries and traditional financial barriers. TangoTech is passionate about community engagement and user experience design. She thrives on building bridges between technology and real-world applications. In her free time, TangoTech is an enthusiastic sustainable whine growing professional and loves exploring Argentina's rich cultural heritage.