For aiding the country’s economy, Laos Government, legalizes the activities relating to the use of virtual currencies. Also indirectly sends an invitation to crypto miners to come and establish mining farms in the country because while legalizing crypto trading, crypto mining too has been welcomed by the orders of Laos’s Prime Minister, Phankham Viphavanh who is of the view that his country urgently requires alternative sources of earning income when the primary source i.e. tourism is currently down due to pandemic. Would the open invitation be helpful in attracting the miners as their breeding ground, particularly for those who have been bode farewell by China.
Laos is the one and only land-locked country in the region of Southeast Asia which is geographically situated between Chinese and Myanmar’s borders.
At present, Prime Minister of Laos has come to believe that crypto is the final solution to all their miseries. The premier acknowledges that the national economy is about to collapse because the pandemic had seriously affected it. He said that previously, the Government used to rely heavily upon the tourism, which became a reliable source of income generation. However, the pandemic put the tourism on a stand-still and there is no change in the situation in two years. The country cannot fight on two fronts without strong economy and this is why the situation calls for legalizing crypto, said Viphavanh.
While legalizing crypto trading, Laos Government, also revealed that there will not be any restriction either upon mining of crypto. This could be taken as an open and secret invitation to crypto miners specifically to those who are moving out of China. Geographically, Laos is situated in the best position because it is surrounded immediately by the orders of Myanmar and China.
Since majority of crypto miners are these days moving out of China, therefore, they would require a place to resettle and resume their mining activities. The first issue these Chinese miners will face would be relating to transportation of their mining equipment. Secondly, they don’t want to move in countries which are too far away from China. Similarly, they would prefer those countries in adjacent states which are crypto friendly. So obviously Laos has an edge over others. If miners consider this open invitation, then Laos could become their next breeding ground for various reasons. Firstly, the country is near to China, which would mean less transportation charges. Secondly, crypto activity is a legal activity and therefore establishing mining farms and conducting operations would not be a problem.
Apart from the two, there is yet another very important reason which could in fact shift Chinese miners’ attraction towards Laos.
Laos is enriched with cheap and environment friendly electricity source which is produced through hydro-electric power plants. Most importantly, most of this electricity remains unused which makes the country an electricity efficient country. The very aspect of cheap and environment friendly electricity is a great deal which in itself has immense potential to lure Chinese miners into Laos. But will the Chinese miners take the bait?