Laos is embracing digital currencies as it has allowed 6 companies to start the mining and trading activities of digital assets in the country. Tourism activities have decreased due to Covid-19 restrictions and to cover the losses country is stepping into the world of crypto, according to the prime minister’s office.
Crypto is fulfilling the promise of solving the problems of people regarding the unjust financial system of this world. Some countries are adopting crypto to bypass the financial restrictions imposed on them and some are trying to supplement the losses caused by the covid-19 situation. Laos is embracing digital currencies and allowing crypto mining and trading.
Laos is embracing digital currencies:
According to the office of the prime minister, six firms have been authorized by the government to start crypto trading and mining activities in the country. The country is trying to amend the losses done by the drop in tourism activities.
Energy consumption has been a major problem in crypto mining pointed out by many influencers like Elon Musk and many others. Laos is embracing digital currencies because it has the capability to provide cheaper energy to the miners.
Currently, Laos produces more energy than its requirement so energy wouldn’t be a problem for them as the national electric grid will not be disrupted. However, the regulators have concerns about crypto because narcotics production is very common in this area.
The Crypto community welcomes the news, but the question remains that crypto if not handled properly can be used for money laundering and other illegal activities. Laos has a plan of continuously regulating these firms and control illegal activities.
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