One of Southeast Asia’s fastest growing economies is seeking to raise nearly $ 200 million through block reward mining. Laos has seen a sharp increase in the sector and estimates that by 2022 it will contribute around 7.5% of its total domestic revenue.
Laotian government expects to raise 2,000 billion kip ($ 194 million) from block reward miners, according to Malaysian newspaper The Star report reveals. Speaking at a session in parliament, Finance Minister Bounchom Ubonpaseuth said the sector would become a major contributor to the country’s total expected domestic revenue, which stands at $ 2.7 billion.
The growth of mining in Laos comes from the fact that the country benefits from the departure of miners from China following its purge of miners. While Kazakhstan, Russia and the United States have garnered all the attention as the new hotbed of Chinese miners, Laos has also seen significant growth.
The Laotian government recently authorized six companies to engage in block mining: Sisaket Construction Company, Phousy Group, Joint Development Bank, Phongsubthavy Road & Bridge Construction, Wap Data Technology Labs and Boupha Road-Bridge Design Survey Co ., Ltd.
Additionally, the Department of Finance is working with other regulators to draft policies for bulk reward miners. These include the Bank of Lao PDR, the Ministry of Planning and Investment, the Ministry of Technology and Communications and Electricite Du Laos.
The minister told lawmakers that the planned increase in revenues, driven by block reward miners, will allow the government to spend more on priority programs.
The Laotian government has not embraced digital currencies like its Southeast Asian neighbors. Vietnam, Cambodia and Thailand, all of which border the landlocked country, have been among the global adoption leaders, 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. He reiterated in his opinion that buying or selling digital currencies is prohibited by law. Digital currencies are not real currencies, the bank added.
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