The Chinese government has famously had a complicated relationship to blockchain technology. Although the Chinese government has previously adopted blockchain technology to some extent as a means to curb corruption as well as improve traceability and liability, it has also come out strong against cryptocurrencies.
Now, however, it would seem that the Chinese government is hedging its bets in regards to blockchain technology. Specifically, a recent report is now alleging that the Chinese government is backing a project to develop a “blockchain city” in Malaysia.
Melaka Straits City – Blockchain City?
Moreover, this project will reportedly see the Malaysian city of Malacca be turned into a testing ground for blockchain technology. In addition to this, Malacca is located adjacent to the Malacca Street, a crucial shipping lane in Asia. This new, blockchain-powered city will also be renamed to Melaka Straits City, according to numerous news outlets.
Furthermore, this project is said to be massive in scope, and will reportedly see Malacca – or Melaka Straits City – transition to being run entirely using blockchain technology. As such, the city’s entire infrastructure will utilize blockchain technology and be built on a so-called “DMI platform”.
This platform will also serve as the foundation for a native DMI token, which will purportedly be used as the city’s own currency. Residents will supposedly be able to use the token to pay for government-based services within the city. Moreover, the city will also feature an exchange, using which tourists are said to be able to exchange fiat currencies for the DMI token.
The project is said to be backed by the Chinese government
This project is said to be led by the Chinese engineering firm China Wuyi, and the investment group SWT International San Bhd who have supposedly jointly launched the project, according to a press release shared with CoinTelegraph on April 26th. The companies behind the project are reportedly looking to raise around $120 million to fund the project.
Project CEO, Lim Keng Kai, noted that this project would help raise the tourist appeal of Malaysia as a whole:
“Our company is using cutting-edge blockchain technologies and integrating those into the traditional industry to make Malaysia a world-class tourist destination. We have the government approval to remediate this land and came up with some great plans for the area.”
This comes as China has been expanding its geopolitical and financial influence and presence in South East Asia for a number of years. Moreover, it is not the first time a region has decided to capitalize on the advent of cryptocurrencies and draw up plans for the integration of blockchain technology. For example, cities in both South Korea and Norway have already announced plans to do so. However, it seems as if this latest project is the most ambitious city-wide plan for integration of blockchain technology to date.
Image Source: “Flickr”
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the cryptocurrency industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.