Laos expected to earn US$193 million from Bitcoin mining in 2022

Lao Finance Minister Bounchom Ubonpaseuth said on Tuesday that he expects to earn 2 trillion kip (approximately US$193 million) through Bitcoin mining by 2022 . This will be an important part of the country’s 28.9 trillion kip ($2.8 billion) domestic revenue forecast next year. It is reported that the poorest country in Southeast Asia is trying to use surplus electricity from its hydroelectric dams that produce large amounts of cheap electricity for mining.

In fact, since 2018, Laos has banned the use of cryptocurrency. But in September this year, Laos suddenly turned around and allowed six local companies to mine cryptocurrencies. Its government has also allowed encrypted transactions and has begun to work on regulating digital assets. This marks a major departure from the country’s anti-cryptocurrency policy.

In September of this year, the Lao government approved a pilot program to pilot cryptocurrency mining and trading for six companies in the country. According to a statement issued by the Prime Minister’s Office, four construction companies, an IT company, and the state-owned JDB Bank are permitted to mine and trade cryptocurrencies. These six companies are allowed to use Bitcoin and Litecoin for transactions.

In addition, the Lao government has also instructed a number of regulatory agencies, including the central bank, to formulate standards for the use of cryptocurrencies in the country. Prime Minister Phankham Vipkhavanh also plans to hold a working meeting with the government to discuss the potential of using cryptocurrency in the country.

A series of moves to embrace cryptocurrency is in stark contrast to earlier statements by Lao officials. Earlier, the central bank issued a notice warning citizens not to use cryptocurrencies including Bitcoin, Ethereum and Litecoin, emphasizing that they have nothing to do with actual currency reserves and are not subject to national legislation, which makes them highly volatile and dangerous.

Regarding the change in Laos’s attitude, some analysts said that the Lao government’s move was due to the severe impact of the domestic tourism industry after the arrival of the new crown epidemic, and the weakening of electricity demand. The mining of cryptocurrency requires a lot of electricity, which happens to consume excess domestic electricity. At the same time, Laos can also use the income generated by mining cryptocurrency to repay nearly US$14 billion in national debt.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/laos-expected-to-earn-us193-million-from-bitcoin-mining-in-2022/
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