Introduction to Laos’ Energy Ambitions
Laos has long been striving to develop into the "battery of Southeast Asia" by harnessing the facility of its quite a few hydropower projects. However, this ambition has left the country with a surplus of electricity and a big amount of debt. In an effort to show this excess energy into economic gain, the federal government has turned its attention to the energy-intensive business of cryptocurrency mining.
The Rise of Cryptocurrency Mining in Laos
The multibillion-dollar business of digital asset mining is notoriously energy hungry, requiring large amounts of power to unravel complex blockchain puzzles. Laos, with its excess energy supply, sees a possibility to capitalize on this industry. By embracing cryptocurrency mining, the federal government hopes to generate revenue and stimulate economic growth.
The Energy Surplus in Laos
Laos has constructed dozens of hydropower projects across the Mekong River and its tributaries, leading to a big surplus of electricity. The country has more power than it could possibly sell, with electricity accounting for 26% of its total exports last 12 months. This surplus energy has been marketed to energy-hungry Asian neighbors striving to fulfill climate targets.
The Controversy Surrounding Cryptocurrency Mining
While the federal government sees cryptocurrency mining as a possibility for economic growth, others are more skeptical. The industry’s high energy requirements have raised concerns in regards to the environmental impact of cryptocurrency mining. Additionally, the dearth of regulation and transparency within the industry has led to concerns about its legitimacy.
