Lao authorities have launched a pilot program to test mining and cryptocurrency trading in the country. More than a dozen local companies will take part in the program.
According to the local publication Laotian Times, representatives of several ministries of Laos, the Central Bank of Laos and the country’s energy company have formed a special working group. It should “investigate and define the roles, rights, duties and responsibilities of various departments and companies when dealing with cryptocurrencies.”
Thus, the country officially legalized mining and trading in cryptocurrencies, however, so far only for selected companies. Analysts point out that this is a smart enough move – Laos has a surplus of electricity produced by hydroelectric power plants, and mining companies can absorb this surplus. Moreover, the bans on the mining of cryptocurrencies in China force such companies to export capacities from the Celestial Empire.
In addition, the legalization of cryptocurrencies could be a step to stabilize the economic situation – a significant part of the funds in the Laos budget came from the tourism industry, but the coronavirus pandemic has led to a decrease in income.
Interestingly, in August, the Bank of Laos issued a warning regarding the use of cryptocurrencies. The agency has already issued a similar warning in 2019.
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