One of the fastest growing economies in Southeast Asia is looking to raise close to $200 million from block reward mining. Laos has seen a surge in the sector and believes that in 2022, it will be contributing about 7.5% of its total domestic revenue.
The Laotian government expects to rake in 2 trillion kip ($194 million) from block reward miners, a report by Malaysian newspaper The Star reveals. Speaking during a session at parliament, Finance Minister Bounchom Ubonpaseuth said the sector would become a significant contributor to the country’s projected total domestic revenue, which stands at $2.7 billion.
The growth in mining in Laos comes from the country taking advantage of miners leaving China following its miners purge. While Kazakhstan, Russia, and the United States have been getting all the attention as Chinese miners’ new home, Laos has also seen significant growth.
The Laotian government has recently licensed six firms to engage in block reward mining: Sisaket Construction Company, Phousy Group, the Joint Development Bank, Phongsubthavy Road & Bridge Construction, Wap Data Technology Labs, and Boupha Road-Bridge Design Survey Co., Ltd.
In addition, the Finance Ministry is working with other regulators to draft policies for the block reward miners. These include the Bank of the Lao PDR, Ministry of Planning and Investment, Ministry of Technology and Communications, and Electricite Du Laos.
The minister told lawmakers that the projected increase in revenue, boosted by the block reward miners, will enable the government to spend more on priority programs.
The Laotian government hasn’t embraced digital currencies like its Southeast Asian neighbors. Vietnam, Cambodia, and Thailand, which all border the landlocked country, have been among the world’s leaders in adoption, with Vietnam topping the Chainalysis adoption index this year.
As recently as August, the central bank issued a warning against the use of digital currencies. It reiterated in its notice that purchasing or selling digital currencies is prohibited by law. Digital currencies are not real currencies, the bank added.
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