Laos' strategy for financing its dam-building frenzy involves cryptocurrency mining.
In the heart of Southeast Asia, Laos is making waves in the global energy market. With numerous hydropower projects constructed on the Mekong River and its tributaries, the country has found a unique way to generate additional revenue for its government – by exporting surplus electricity to support energy-intensive businesses, particularly bitcoin mining.
Bitcoin mining, known for its energy-hungry nature, is a process that involves solving complex blockchain puzzles in exchange for digital tokens such as Bitcoin. This energy-intensive business is causing local controversy in Laos, but the government is pushing forward, seeing it as a valuable opportunity to utilise the surplus electricity that is not being fully utilised within the country.
The surplus electricity from Laos' hydropower projects is being directed towards energy-hungry Asian neighbours, contributing to the electricity needs of these countries. This move is generating additional revenue for the Laotian government as bitcoin mining rewards participants with digital tokens.
However, the specific players in the bitcoin mining industry in Laos and the amount of electricity they consume remain unclear. What is certain is that Laos is increasingly becoming a significant location for resource extraction, with significant investments from neighbouring countries like Vietnam.
The business of bitcoin mining is valued at multibillions of dollars and is causing international intrigue. As Laos continues to export its surplus electricity, it is likely to remain a key player in this growing industry, bridging the electricity needs of energy-hungry Asian countries and the high-demand world of cryptocurrency.
