Crypto mining is expected to bring these benefits to Laos.

Laos, with its hydropower potential and low electricity rates, is one of the most cheap places in Asia (excluding China) to mine Bitcoin. Furthermore, the landlocked country, which has a population of 7,416,475 people, appears to be aware of this. Investors and governments, on the other hand, may question if this is a feasible aim.

Countless billions and trillions

Laos appears to be realizing the potential for benefits in the crypto industry by allowing six firms to mine and sell bitcoin on a trial basis. The government wants to generate 2,000 billion kip [LAK] or two trillion LAK [approximately $192,971,600 at press time], according to local news outlets.

"Minister of Finance Bounchom Ubonpaseuth informed the National Assembly's 9th legislature on Monday that this new revenue stream will contribute to the 28,963 billion kip in total domestic revenue predicted for 2022."

According to the study,

"The government would be able to spend more on important programs thanks to a predicted increase in revenue of 3,754 billion kip (compared to 2021), including 2,000 billion kip received from Bitcoin mining."

But the most important question is if this is a goal that can be achieved. According to Arcane Research, Bitcoin miners have earned $13.6 billion so far in 2021. The Cambridge Bitcoin Electricity Index, on the other hand, indicated that in August 2021, America controlled 35.40 percent of the average monthly hash rate share, while Laos' participation was minuscule.

Furthermore, Arcane Research found that the cost of mining one Bitcoin using power in most places of America is $10,000 or less, whereas the cost in Laos is between $10,000 and $20,000. Furthermore, unlike the United States, regular citizens in Laos are not permitted to mine or sell cryptocurrency.

Water and development

Both crypto mining and blockchain development have a lot of promise in Laos. Laos' central bank has hired the Japanese fintech firm Soramitsu to investigate the country's CBDC alternatives. Soramitsu previously worked on Laos' neighbor Cambodia's Bakong digital payment solution.

In terms of crypto mining, according to the CBECI, Thailand's average hashrate share in August 2021 was 0.99 percent, while Vietnam's was 0.02 percent. Meanwhile, Laos has plenty of strong waterfalls that might help it launch its own mining project — and put it ahead of neighboring rivals like Malaysia.

Laos and China are two countries that share borders.

The two nations are important commercial partners, and a CBDC or multiple-CBDC bridge might reduce the cost and speed of cross-border remittances. After being pounded by COVID-19, Laos' venture into crypto mining might prove to be an extra source of support and international investment.

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