Laos expects to earn $190 million from bitcoin mining

The government plans to use the profits from the new source of revenue for priority programs

07.11.2021 - 07:30

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What's new? According to a report by the Cambodian newspaper Phnom Penh Post, the Lao government expects to receive revenue from bitcoin mining in the amount of about $190 million next year. Bounchom Ubonpaseuth, the Minister of Finance, said that cryptocurrency mining will contribute about 7% to Laos' expected domestic revenue in 2022, which will amount to approximately $2,8 billion.

Article on the Phnom Penh Post platform

Where will the funds go? According to the Phnom Penh Post newspaper, the Lao government plans to use the funds from the new source of revenue for priority programs.

“These include increasing supporting allowances to cover the living expenses of officials and security force personnel, expenditure on efforts to respond to the Covid-19 outbreak, and the payment of debts.”

What has become a source of additional revenue? Lawmakers have allowed six companies to launch a pilot program for bitcoin mining and trading in Laos. However, the country's central bank has had a negative stance toward cryptocurrencies in the past. A group of banks and regulators in the field of technology and finance in Laos is currently working together on a draft legislation related to bitcoin mining and trading.

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