Rap music mogul Akon has founded the foundations of Akon City, a "cryptocurrency futuristic city" in Senegal, after securing $ 4 billion from investors.
The city will use the digital currency exclusively, Akoin, and plans to create parks, universities, schools, playgrounds, hotels and other public facilities. The coin will be the de facto currency of the Senegalese city that it is building on land donated by the government.
Akoin is one of the roughly 1,600 cryptocurrencies circulating around the world with a market capitalization of over $ 267 billion, according to data from Coin Market Cap.
The digital currency was announced in 2018, and Culture Banx reported that the singer and his team plan to build an entire ecosystem around Akoin, including city building and initiatives to support young entrepreneurs.
Aquin defines his currency - according to the project's website - as "a cryptocurrency supported by a marketplace of tools and services that nurtures the dreams of entrepreneurs, business owners and social activists as they connect and engage across emerging economies in Africa and beyond."
It is noteworthy that more than 60% of people in Africa are under the age of 25, do not deal with banks, and rely heavily on cell phones to do everything, which means, according to analysts, that Aquin’s idea could really take off all over the continent, as 6 of The 10 fastest growing economies are in Africa.
In 2034, Africa is expected to have the largest working-age population in the world, which will reach 1.1 billion, according to the World Economic Forum, and consumers on the continent are also expected to spend $ 2 trillion by 2025.
Fears of cryptocurrency cities
Many African governments have expressed doubts about the viability of cryptocurrencies, and the Reserve Bank of Zimbabwe has banned banks from processing digital currency payments in the country.
South Africa's Revenue Service recently published guidance on how to tax cryptocurrencies, sparking controversy over their classification, and the Kenya Central Bank has been slow to publish regulations to issue cryptocurrencies.
In spite of all these doubts related to the concerns of these countries about the danger of digital currencies and the possibility of people losing money in these countries, the integration of the "block chain" technology in building the city has gained momentum in recent years.
Analysts say that although none of these projects have succeeded so far, time will tell whether cryptocurrencies like Aquin will stabilize African economies or leave consumers wanting to keep their money in traditional currencies.
Akon joins a host of other celebrities involved in cryptocurrency, and the first phase of Akon is expected to be completed by the end of 2023.
It will include construction of roads, the Hamptons Hospital campus, the Hamptons Mall, residences, hotels, a police station, a school and a solar power plant, and the second phase will run from 2024 to 2029.