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- Laos has become the latest country to announce research on a central bank digital currency, announcing a collaboration with Soramitsu, a Japanese DLT business
- Such a set-up would also make way for cross-border transactions and settlements with the neighboring countries and several other vital trading partners, which includes China
- The decision by the Laos government to investigate a CBDC appears to have coincided with a drive to investigate more lenient digital asset legislation
Laos has become the latest country to announce research on a central bank digital currency, announcing a collaboration with Soramitsu, a Japanese DLT business. According to previous stories, the initiative is set to start this month, after the signing and acknowledgment of the central bank of Laos with the ICA of Japan, which is meant for exploring the CBDC and its development processes that are going on.
The research will examine the activities of banks and other financial intermediaries within the financial system, as well as the common public of Laos’ overall transactional requirements. As per the researches performed, the data reveals that setting a CBDC would ensure valid economic data that can be provided to the policymakers, to some extent. Such a set-up would also make way for cross-border transactions and settlements with the neighboring countries and several other vital trading partners, which includes China.
Soramitsu collaborated and joined hands with Cambodia to create the Bakong digital payment system, a DLT-based payments network aimed at reducing the country’s dependency on US dollars for internal trade. Several countries have had plans to get rid of their dependencies on the US dollars, out of them such a step has helped Laos to achieve it. Since the time it first entered, in October 2020, the Bakong app has been downloaded over 200,000 times and is now supported by over 2,000 shops, making it a marvelous successful attempt. The decision by the Laos government to investigate a CBDC appears to have coincided with a drive to investigate more lenient digital asset legislation.
On 11th September 2021, the government approved a public-private pilot project to investigate cryptocurrency mining and trading in order to take advantage of China’s recent crackdown on the mining industry and the consequent flight of industrial-scale miners. The crackdown of China has not only affected a few, but many countries across the globe and has also affected several industrial domains. As part of the scheme, six organizations, including banks and construction enterprises, have been granted authorization to generate crypto assets.
Regulations and control of digital assets have become a key topic of discussion across the leading bodies. Several government departments, coordinated by the Ministry of Technology and Communications, have begun writing laws controlling the usage of digital assets in Laos in collaboration with the Bank of Laos and the national power utility Electricite du Laos. The country’s central bank, on the other hand, issued a warning to the public about the dangers of uncontrolled crypto assets like Bitcoin and Ethereum.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
