Why Akon's cryptocity in senegal could work

[Hydrogen]

Africa has become known for financial and economic instability stemming from fiat currency hyperinflation, resource and economic mismanagement and assorted systemic faults. Whether we're discussing the dark history of the zimbabwe dollar. Or africans paying $20,000+ for 1 bitcoin in 2017 when the price of BTC was $16k in other parts of the world, on greatly elevated demand. A dire need for economic and financial stability in the region, could make akon's proposed city in senegal viable. It could shield residents in the region from fiat hyperinflation, providing consumers with greater options to protect wealth. Free market competition introduced by akoin could incentivize banks in the region offering better terms and rates. All of which could boost job markets and economies. Leading to elevated wealth, freedom and standard of living.

In 2018 many were disappointed to learn there was no wakanda in africa. Black Panther was making its rounds in theaters. Africa being the acknowledged birthplace and cradle of human civilization. It seems to intuitively follow africa could have a high tech city of enlightened principles and superior technology to show for their culture being ranked amongst the most ancient on the planet. It has captured imaginations so that some have announced proposals to build their best version of a city like wakanda from the movie. Akon is not the first to make such a proposal. Like James Lebron of NBA fame founding his own private school which in ways is superior to state run public schooling. Perhaps Akon can improve conditions and standards through initiatives like this one, if their implementation reflects fundamental needs of the people.

It all comes down to details and implementation IMO.

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[avikz]

It's a $6 billion city that Akon has started constructing! I was reading an article on it just a day back and the article says that the city is almost 85% completed and the remaining work will be completed by 2023 for phase 1. The dream is big and I want to salute Akon for doing great things for his motherland. We all know that the city's financials will be completely powered by Akon's own cryptocurrency AKoin and it's a super-ambitious project for anyone on the earth due to its politically and economically disturbed location - Senegal!

We don't know if such a project can drastically change lives of the Africans or not, but I am sure it would definitely benefit the people involved with the project. Millions of people have found their employment during construction phase and more people will be employed once the facility is complete because it would need people to run the city. If changing lives mean a better job and better living condition, then I am sure Akon's city will do good in such parameters. But we don't really know about its long term effects yet and we can't really speculate because the project itself is one of a kind and very very unique in nature!

But if it really helps African people is good way, I believe more and more such projects would come up with the help of wealthy business tycoons. Let's just hope for the best because it is impossible to draw a conclusion right now!

[exstasie]

Africa has become known for financial and economic instability stemming from fiat currency hyperinflation, resource and economic mismanagement and assorted systemic faults. Whether we're discussing the dark history of the zimbabwe dollar. Or africans paying $20,000+ for 1 bitcoin in 2017 when the price of BTC was $16k in other parts of the world, on greatly elevated demand. A dire need for economic and financial stability in the region, could make akon's proposed city in senegal viable. It could shield residents in the region from fiat hyperinflation, providing consumers with greater options to protect wealth. Free market competition introduced by akoin could incentivize banks in the region offering better terms and rates. All of which could boost job markets and economies. Leading to elevated wealth, freedom and standard of living.

You can't just build network effect from nothing. It has to evolve organically. That's why I'm so skeptical about ideas like this.

Even if businesses receive incentives and subsidies to build and operate there, they won't be happy to transact only in akoin. It's one thing for tourists to have to convert currencies when they arrive at a tourist destination. It's quite another to force businesses to accept an illiquid and volatile currency they will struggle to liquidate. Businesses can't reliably cover their overheads that way. It's just not sustainable.

[LeGaulois]

@exstasie

With the taxes reduction, it will only attract riches or companies. Companies that trade outside and therefore will not need to bother using this crypto. Whether it is for imports or exports. The same for external companies won't want to deal with another currency, to have to exchange it and to pay FX fees.
Which companies have the interest to be there? Not the nationals only the internationals

And the riches looking to live à la Dubai with high tech. infrastructures, big malls,etc

Imagine also the citizens, they will live with this currency, as soon as they go out of the city they will need another currency. People outside the city will also need to change their currency.

@avikz

One city won't change a whole continent. Millions jobs have been created? Where did you got that.
There's another guy looking to do the same thing, but a city a lot bigger in Nevad called Innovation Park
https://therealdeal.com/la/2018/11/04/this-crypto-millionaire-is-building-his-own-city-in-the-nevada-desert/

[Upgrade00]

https://therealdeal.com/la/2018/11/04/this-crypto-millionaire-is-building-his-own-city-in-the-nevada-desert/

According to more recent reports this project is yet to take off and is currently facing restrictions from the local government in acquiring rights to set up strategic resources in the area. Link - https://www.google.com/amp/s/decrypt.co/20969/nevadas-170-million-blockchain-city-facing-challenges%3famp=1
The project was launched at a time when altcoins were still being hyped and blockchain was marketed as a technology that could be applied to every sector. I would assume this project was supposed to key into that hype.

An isolated utopian society is not sustainable in my opinion, the world has become more interconnected with huge spikes in global trade and financial openness over the last few decades, having a society which would function on its own is impossible, and if the residents in that area still have to hold the nation's legal tender and make trades across, that sort of invalidates the ambition.

[tbterryboy]

Akon's crypto city is a good idea, it’s a really good thing that he’s trying to do and I have seen the advert of the Akoin foundation a few times when I opened my Instagram, and based on how they explained it, the main purpose for them to be working towards creating the Akon city is to kind of be an example to the African leaders on how things can be done.

Well, there is nothing wrong with the plans they have, the only problem is these corrupt African leaders, they never value anything because they are only interested in their pockets and not on making Africa a better place. Africa is truly a Wakanda, because they have lots of resources that can help them to build their countries, there are plenty resources but they are not making proper use of it.

[Darker45]

If you list down the reasons "Why Akon's cryptocity in senegal could work" versus the reasons why it couldn't, I believe the former would turn out too short compared to the latter.

Here is a thread on the same topic which was created in January of this year: https://bitcointalk.org/index.php?topic=5217729.0.

I am not updated as to the development of this grand plan but here's my couple of Sats posted several months ago when the news of Senegal's approval of Akon's Crypto City came out:

Here are a few things noteworthy on this project:

• The 2,000-acre land is a donation from the president of Senegal himself.
• There is now an existing Memorandum Of Understanding (MOU) between Akon and a state-owned tourism company. Both the token and the project have yet to launch, though.
• The project will cost around 2 billion USD. Akon and his project will never be able to shoulder everything. My hunch is that there must be a significant portion coming from the government or at least from a few top officials who are sitting there enriching themselves from the government coffers.

And yet Akon is saying that crypto and blockchain are good, in fact, "the savior of Africa", "because it brings the power back to the people." And that both "enables people in Africa to advance themselves independent of the government." Well, this early, the project is already indebted to the government and the person wielding the most power in the country.

I am with the fervent hope, however, that Akon's plan would succeed nevertheless and be able to contribute to Africa's much-needed progress. The man appears to be honest in his vision.

[Lorence.xD]

Well, there is nothing wrong with the plans they have, the only problem is these corrupt African leaders, they never value anything because they are only interested in their pockets and not on making Africa a better place. Africa is truly a Wakanda, because they have lots of resources that can help them to build their countries, there are plenty resources but they are not making proper use of it.

That is the most rampant problem of every developing country, corruption really impedes growth. I think the problem could be solved through education because the more a person learns and becomes aware of what is happening around the country then they will be obligated to choose a suitable leader that will help their country grow. The problem with these natural resources is that there are few investors that are willing to venture to the continent, the peacekeeping and corruption is a really big problem for investors and I hope Akon City will be a stepping stone for a bright future for the continent.

[hatshepsut93]

All of what you said can be applied to Bitcoin. Ever since early days, there were talks how Bitcoin will save poor regions, because all their problems come from fiat money. Bitcoin is now 11 years old and there's barely any adoption, especially in those regions where it was supposed to be the best alternative to fiat money. And if Bitcoin is failing to get adopted here, what chance does some outlandish and scammy shitcoin can have?

[allahabadi]

All of what you said can be applied to Bitcoin. Ever since early days, there were talks how Bitcoin will save poor regions, because all their problems come from fiat money. Bitcoin is now 11 years old and there's barely any adoption, especially in those regions where it was supposed to be the best alternative to fiat money. And if Bitcoin is failing to get adopted here, what chance does some outlandish and scammy shitcoin can have?

BTC or any crypto has inherent limitations; primarily tech and electricity, which poor regions do not hv. these regions also lack pioneer since banks and such bodies do not want Decentralisation; hence suppression also takes place. BTC will take its own time; but adoption will happen.

Also; STAY AWAY FROM SHITCOINS.

[amishmanish]

I only just read about this and i think this is one of those long awaited good things for Africa. African-Americans have a struggle of their own but some of them have been fortunate enough that they can use their money and influence to do something constructive. Like in this case, it was Akon's influence that he could get the land gifted to him.

What is of importance is the geographical location of Dakar, the capital of Senegal where the city is planned. Dakar is almost the western-most port city of Africa. That puts it in an enviable position to develop as a connecting port with the West, including South America and North America. It is evident that the development of countries is strongly linked to such well-connected destinations that over centuries, became important centres of trade and business. There are plenty of examples. Dubai was a small fishing outpost where people used to dive for pearls before the UAE sultans decided to pour money and build the best infrastructure in Middle-East. I feel its a well planned development with a potential for returns for Senegal and African continent over the next few decades.

The integration of crypto-economy is obvious because the benefits of having a money source independent from the Govt can only be a good idea considering Africa's record of fickle governance.

[sunsilk]

I'll wait until it's been finished and things implemented on the Akon City. At the very first understanding by looking at the news and proposal, we can't simply believe the idea because it's still in the planning phase.

If Akon didn't use a token made from his name but it's bitcoin, more support will he get from different bitcoin communities and countries who do believe on this project. The example of a struggling economy is Venezuela. Many stories from the citizens there were able to survive the hyperinflation through bitcoin.

[hugeblack]

Africa’s problem is energy. If this problem is solved, the continent will develop quickly.
Digital currencies may contribute to mitigating some of the economic impacts of the peoples of those regions, but it will not be a dream.
I am against central currencies or those bearing the names of their founders. It is just an attempt to collect more money by exploiting free raw resources in those countries and not investment opportunities.

[The Sceptical Chymist]

Africa being the acknowledged birthplace and cradle of human civilization. It seems to intuitively follow africa could have a high tech city of enlightened principles and superior technology to show for their culture being ranked amongst the most ancient on the planet. It has captured imaginations so that some have announced proposals to build their best version of a city like wakanda from the movie.

Black Panther was a movie--and a comic book well before that.  Whether Africa is the birthplace of human civilization or not, there is nothing even closely resembling Wakanda anywhere on the continent.  From much of what I've seen, many parts of Africa have remained in the dark ages, even if they've got smartphones and are buying bitcoin.  That's not a knock against the citizens; I think it's the governments that have kept the people repressed for a long, long time.

If you list down the reasons "Why Akon's cryptocity in senegal could work" versus the reasons why it couldn't, I believe the former would turn out too short compared to the latter.

I'll be honest, I haven't read much about the proposed city, but I'm going to do exactly that after I'm finished writing.  My gut is telling me the above statement is probably correct, however.  I'm not sure a city like Akon would turn out to be an improvement and likely would even fall short if you compared it to a typical city in a first world country. 

But my gut is also telling me "why not give it a shot?".  Lots of people seem to think cryptocurrency is a panacea for many economic ills, and it would be an interesting experiment if nothing else.

[Darker45]

But my gut is also telling me "why not give it a shot?".  Lots of people seem to think cryptocurrency is a panacea for many economic ills, and it would be an interesting experiment if nothing else.

Indeed, why not give it a shot? In a country where almost half of the population is living in poverty, each and every idea, plan, vision, effort to somehow ease the situation count and should be given a shot. But if in the process it burns billions and billions of money, other ideas should simply be shelved, particularly those which are somehow grounded upon wrong assumptions such as cryptocurrency and blockchain are the "savior of Africa."

Both Senegal and the entire African region are not just suffering from economic illnesses, some of which may be improved with the use of crypto and blockchain, but also of political ones which might prove to be harder to cure considering that the most powerful are probably the ones who are problematic.

[Hydrogen]

You can't just build network effect from nothing. It has to evolve organically. That's why I'm so skeptical about ideas like this.

Even if businesses receive incentives and subsidies to build and operate there, they won't be happy to transact only in akoin. It's one thing for tourists to have to convert currencies when they arrive at a tourist destination. It's quite another to force businesses to accept an illiquid and volatile currency they will struggle to liquidate. Businesses can't reliably cover their overheads that way. It's just not sustainable.

Volatility would mainly affect businesses who hold akoin. Exchanging akoin for another more stable currency shortly after transactions would protect against volatility if it became a concern. A few years ago, uganda implemented a "social media tax" where ugandans were taxed for using social media platforms like facebook or instagram. Their banking industry is structured similarly with usury level fees. Enough so that african crypto exchanges like golix were always willing to pay 20%+ more for bitcoin, in contrast to crypto exchanges in other regions of the world. They wouldn't necessarily struggle to liquidate akoin. Crypto is in high demand there due to it being a far more efficient and cost effective system than banking platforms africans normally deal with.

IIRC the wage in some african regions is as low as $30/month. While this is being hyped as a multi billion dollar project. It could be implemented with a smaller price tag, on a grassroots level.

The real question is whether banks and governments would view it as a "threat" to their monopolies in the area.

Black Panther was a movie--and a comic book well before that.  Whether Africa is the birthplace of human civilization or not

The DNA of all currently living people has been traced back to a single woman who lived in africa more than 100,000 years ago.

https://en.wikipedia.org/wiki/Mitochondrial_Eve

It would seem that's where modern man descended from. Although there are some who do claim differently.

[ChiBitCTy]

Did anyone catch him on the Pardon My Take podcast the other day? I have it DL'd, curious if it's worth a listen to. I know that one of the topics was going to be bitcoin / cryptocurrency.  BigCat ( one of the hosts ) introduces him as a guy who's "building his own city in Africa and got his own bitcoin called Akcoin".

[DarkDays]

Although I definitely believe that there is a great need for alternative financial solutions in Senegal (and Africa in general), I don't think Akon or his Akoin platform will be the one to achieve it.

Sure, Akon has done a good job of positioning himself as a world-renowned singer-songwriter, but to create an entire god-damn city is another kettle of fish entirely. It costs hundreds of millions, if not billions of dollars—even in Africa.

He says that he's going to market the city as a sort of medical hotspot, to prompt medical tourism from local regions and countries, but it takes a god damn long time to set up these facilities and then establish them as leaders in the field. It's going to take a long time before this is anywhere close to viable.

Also, paying everybody in Akoin? What is he going to do when the currency absolutely tanks, just like every cryptocurrencies at some point—and he has to deal with a mass exodus of doctors and other employees? I doubt the city will even be completed.

[audaciousbeing]

Personally, I really want the city to work. While Akon's proposed city would not be the solution to Africa's problem, it would also not be bad to see some development in that regard. Africa as it stands today needs all of the development and help it can get from anyone meaningful individual and countries across the world and if that should work, it becomes an channel for others to also tap into.

Now, I am sure there will be challenges because I have been reading about this project for a while now and hoping that it will materialise eventually. Akon has a good heart because he has provided enough for himself already and the next is for him to provide for his home country which he could be justified if he fail to do anything.

[electronicash]

hard to think he could really achieve this wakanda city but he may not try this if he doesn't get support from the outside. The Chinese had been building projects in the countries in Africa. he can make a deal to them after all the chinese always want to make money in an ambitious projects.

it doesn't really need to be a paradise city because its absolutely going to disappoint you, but just everything running on chain making transactions visible to everyone.
he can build it organically by starting a big casino first in the middle of the city. its something that will attract people and investors.