Lao government approves testing of cryptocurrency mining and trading – Bits Media

Lao authorities launch 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 a local publication Laotian Times, representatives of several ministries of Laos, CB Laos and the country's energy company have formed a special working group. She must "explore and define the roles, Rights, duties and responsibilities of various departments and companies when working with cryptocurrencies".

Thus, the country has officially legalized mining and trading of cryptocurrencies., but, for now only for selected companies. Analysts note, that this is a pretty smart move - Laos has a surplus of electricity, produced by hydroelectric power plants, and mining companies can absorb this excess. Especially, that bans on cryptocurrency mining in China force such companies to remove power from the Middle Kingdom.

Besides, legalization of cryptocurrencies could be a step to stabilize the economic situation - a significant part of the funds in the Lao budget came from the tourism industry, however, the coronavirus pandemic has led to a decrease in income.

Interesting, that in August the Bank of Laos issued a warning regarding the use of cryptocurrencies. The agency has already issued a similar warning in 2019 year.