Buenos Aires Will Run Ethereum Validators Starting in 2023

Buenos Aires plans to deploy and operate Ethereum validators next year, the city government says


Source: Shutterstock


key takeaways

  • The city will be a driving force behind blockchain adoption, but private companies will serve as partners in node deployment
  • Buenos Aires announced in April that citizens would be able to pay taxes using cryptocurrencies

Buenos Aires will become one of the first public entities in the world to help run Ethereum’s network infrastructure, a city official announced during Argentina’s 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 city’s secretary of innovation and digital transformation, Diego Fernández, didn’t disclose how many nodes would be deployed during last week’s announcement, but each validator requires a stake of 32 ether to operate (currently valued at about $60,300).

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

Fernández, a crypto enthusiast, told Coindesk that the city’s decision “has exploratory and regulatory purposes” that will help “develop adaptable [crypto] regulation.”

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

However, the country’s capital has continued to look favorably upon the nascent space. Buenos Aires Mayor Horacio Rodríguez 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 world’s 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.

Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.


Upcoming Events

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research



Data publishing costs have historically been a bottleneck for rollups, and as more rollups launch, interoperability will continue to be a major challenge. Avail presents a potential solution to rollup fragmentation through its three products: Avail DA, Nexus, and Fusion, which together aim to unify the web3 experience.


The Bitcoin halving is a spectacle that only comes round once every four years


The SEC alleges that Justin Sun spent nearly 400 days in the US from 2017 to 2019


Short-term “sell the news” reactions could follow new BTC price peaks months from now, industry watchers say — but only if history repeats itself


While crypto fundraising remains well off its bull market highs, Q1 data shows capital is returning to the space


Billed as a better BRC-20 fungible token standard, Bitcoin Runes launches tomorrow


Bitcoin miners need to explore unconventional energy avenues or be buried by the financial realities created by this halving