Communist Laos Looking To Turn Extra Hydropower Into Crypto Mining To Tackle Debt: Report

Southeast Asian country Laos is turning to cryptocurrency mining as a way to ease its growing debt burden and put surplus energy to use, according to a report published Wednesday.

Laos Looking To Monetize Surplus Power Through Crypto Mining

Laos’ aspiration to be the “battery of Southeast Asia” has led to an energy surplus from its numerous hydropower projects built across the Mekong River, reported the South China Morning Post. This energy boom, however, has resulted in a significant rise in debt, owed mostly to Chinese loans and foreign firms that funded dam construction.

The government is now licensing local cryptocurrency trading platforms and mining operations, hoping to convert the surplus energy into economic profit and reduce the country’s debt. However, authorities have expressed concerns over the risks associated with the volatile nature of digital assets.

Moreover. environmentalists see the pivot to cryptocurrency as a sign of deeper problems with the country’s “flawed” energy strategy that has compounded the debt problem.

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Laos is one of the five active Communist states in the world and has been governed by the Lao People’s Revolutionary Party since 1975.

Bitcoin Mining on Countries’ Radar

Laos’ move towards cryptocurrency mining mirrors similar strategies by other nations. The Himalayan nation of Bhutan has been using its hydropower resources for Bitcoin BTC/USD mining to stimulate its economy without compromising its environmental goals.

As of this writing, it holds a stash of 9,652 BTC, worth $1.31 billion, according to blockchain analytics platform Arkham. Bhutan’s holdings, unlike those of the U.S., came from indigenously developed mining capabilities rather than law enforcement seizures.

Similarly, Pakistan unveiled plans earlier in May to assign 2000 megawatts of electricity for Bitcoin mining and artificial intelligence data centers as part of its strategy to harness excess electricity.

Last month, France also considered mining Bitcoin using excess energy generated by the country’s nuclear power plants.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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