Laos, a small yet picturesque nation nestled in the heart of Southeast Asia and bordered by Thailand, Cambodia, Vietnam, China, and Myanmar, faces significant economic challenges alongside strict governmental controls on the media. Ranked 153rd in the 2024 World Press Freedom Index and 114th on the Corruption Perceptions Index, the country grapples with pervasive corruption and extensive censorship. Despite these obstacles, Bitcoin is gaining momentum as an alternative financial asset, driven largely by the country’s economic difficulties and rising inflation.
During a conversation with Ted, a Laotian Bitcoin enthusiast based in Chiang Mai, Thailand, it became evident that the growing interest in Bitcoin stems from Laos’s precarious economic situation and the heavy debt burden tied to China. The country has taken on substantial loans totaling $6 billion for a major railway project under China’s Belt and Road Initiative, resulting in national debt amounting to 66.2% of GDP. Additionally, monetary expansion following the COVID-19 pandemic has further strained the economy.
The Laotian government permits Bitcoin mining by leveraging surplus hydroelectric power, issuing licenses to private miners and collecting taxes on their activities. However, its understanding of the cryptocurrency sector remains limited, and Ted highlighted systemic inefficiencies such as the government selling electricity cheaply while purchasing it at higher rates, indicative of financial mismanagement. Corruption is widespread, with officials frequently acquiring loans that remain unpaid, exacerbating the country’s fiscal vulnerabilities.
Within Laotian society, Bitcoin is increasingly viewed as a secure store of value amid economic uncertainty. Meetings centered around cryptocurrency are taking place in Vientiane, and Ted, alongside other Bitcoin advocates, is working to provide educational resources and materials in the Lao language to broaden public access to this emerging financial technology. Ted believes that beyond preserving wealth, Bitcoin could also serve as a tool for enhancing freedom of expression in the country.
This burgeoning Bitcoin movement in Laos represents a grassroots initiative offering hope to citizens of a small yet complex nation. As it unfolds, it warrants international attention for its potential to foster economic resilience and empower individual liberties within an environment marked by economic hardship and political constraints.
