Laotian govt budget expected to gain $194M from crypto miners by 2022

A pilot project by the Lao government to explore cryptocurrency mining, trading, is expected to generate approximately $194 million to the country’s projected total domestic revenue for 2022.

A Nov. 2 report by Malaysian news outlet The Star claims that the Laotian government’s latest bid to capitalize upon China’s crypto-mining crackdown could be earning the country 2 trillion kip, or roughly $194 million in revenue, from six companies. Officials approved the September public-private mining pilot program for Wap Data Technology Laos and Phongsubthavy Road and Bridge Construction and Sisaket Construction Company Limited. Boupha Road Bridge Design Survey, Joint Development Bank and Phousy Group were also included.

According to reports, the government claimed that the funds would increase revenue for the draft budget of the National Assembly in 2022 by 20% compared to 2021. The extra revenue will be used by lawmakers to fund “priority programmes”, such as paying down national debt or responding to the pandemic.

Related: After the exodus from China, Bitcoin miners settle down

Although six companies were granted permission by the Laotian government to mine crypto, the central bank of the country has issued several warnings over the years, warning residents about the dangers associated with unregulated crypto assets. These assets are still illegal in Laos. Bank of the Lao P.D.R is looking at the possibility of developing a digital currency partnership between the central bank and Soramitsu, a Japanese distributed ledger technology company.