The Malaysian city of Malacca, backed by the Chinese government, is building, some will say, a utopia — a town that will shun cash and traditional currency in favor for cryptocurrency and the blockchain technology.
They want to make the 835 acres of Melaka Straits City, this is the proposed city’s name, the “tourist blockchain-destination of the future.” The China’s Ministry of Tourism estimates a total of three million visitors per year.
The project is carried out by Construction and engineering company China Wuyi and investment network SWT International Sdn Bhd. The project team is planning to raise 500 Malaysian Ringgits ($120 million) during the initial stage.
The city will be run solely on cryptocurrency, and the city’s entire infrastructure will be based on the blockchain technology. Melaka Straits will have its own currency, the DMI coin, with which residents and visitors will pay for public services and more using either a web app on their laptops, or the Android/iOS mobile app.
“Tourists in the city will have to exchange their money for digital currencies, which they can use to pay for services,” explained Lim Keng Kai, CEO of the Melaka Straits City project.
Melaka Straits is the latest in a series of municipalities that have decided to use crypto to run their city economies but it will be the first such city in Asia.
In June 2018, South Korea announced plans to launch a blockchain center in Busan city modeled on the Swiss Crypto Valley, an independent cryptocurrency and blockchain development hub backed by the government of Switzerland.
In 2015, a private, anarchist city of Liberstad was founded in Norway. In February this year, Norway’s autonomous city adopted a cryptocurrency as its official medium of exchange.
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