28.11.2021

Following the legalization of bitcoin and mining, Laos plans to launch CBDC

Laos continues its journey into the cryptosphere. In September, the country allowed six companies to mine and trade bitcoins. This was done, among other things, taking into account the great opportunities for generating energy using hydroelectric power plants.

Now the central bank of Laos has signed an agreement with the International Cooperation Agency (Japan) to jointly explore the possibility of launching a government digital currency (CBDC). Soramitsu, a Tokyo-based technology firm, is also partnering in this task.

Soramitsu is best known for working with the central bank of Cambodia on the development of the Bakong digital payment platform, as well as the Bakong digital currency project of the same name, which would reduce the dependence of the Cambodian economy on the US dollar.

As Soramitsu stated:

“Thanks to the use of Bakong through local bank applications, 5.9 million users were able to see the benefits of launching such a platform in the first half of 2021 alone. The number of users of Bakong digital wallets has reached 200 thousand, more than 1.4 million transactions have been carried out for an amount equivalent to $ 500 million. “

Laos intends to take advantage of Soramitsu’s technological experience and localize it in their country. It is also worth noting that Laos and China are important trading partners. According to the OEC, imports from China to Laos totaled $ 1.87 billion in 2019, while exports from Laos to China reached $ 1.88 billion. As you know, the People’s Bank of China has been actively testing the digital yuan (DC / EP) for the past two years.

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