Why Akon's cryptocity in senegal could work

[exstasie]

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.

For every seller, there must be a buyer. For those businesses to be able to instantly dump their akoin, there needs to be very robust OTC and exchange demand for akoin. Why would this demand exist? Just from tourists visiting Akon City?

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.

Bitcoin may be in high demand. I'm not convinced there is similar demand for akoin.

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[MCobian]

Indeed, the financial problems that occur in African countries are caused by hyperinflation, and akon crypto city are indeed a good idea
to be implemented. Hopefully there aren't any obstacles to get in the way of the plan, actually if Akon didn't create cryptocurrency
in Senegal. Another solution is to follow what Venezuela is doing in overcoming hyperinflation by adopting Bitcoin.

[amishmanish]

The nomenclature "City" makes most people feel skeptical about this. At 2000 Acres, this is equivalent to a square plot of 2.8 x 2.8 Km. Smaller than any modern-day city, this is essentially a small Special Economic Zone. SEZ's have been instrumental in development in countries like India and China. Most of the time, SEZs require massive investment in connectivity and other infrastructure by the local governments so that corporations can setup their factory units at their own cost and benefit from the infrastructure as well as tax breaks. Doing something like this in Africa is difficult due to the scale involved, massive public corruption and general lack of funds. A smaller scale experiment like this one is a perfect choice.

Here's a useful article and it seems that the construction contract has already been awarded to an American company. If the involved stakeholders can ensure corruption-free handling of the contracts and actual delivery on the ground, this can well become a model of development supported by NGOs and philanthropists throughout Africa. I have spent sometime working in a war-torn country in Africa. I can say that the people are really good but time and gain they have been manipulated and betrayed by the rulers as well as foreign establishments interested in keeping them backward so they don't start staking claims on their resources. Africa's modern history is a story of betrayals and failed promises. Yet, people like Akon give hope.

[Upgrade00]

If the involved stakeholders can ensure corruption-free handling of the contracts and actual delivery on the ground, this can well become a model of development supported by NGOs and philanthropists throughout Africa.

But corruption can not be completely eradicated, and even it can, it still depends on the trust the residents and organizations have on the developers, this overrides the need for the blockchain affiliation. Decentralization and trustless-ness is the key factor of Bitcoin as you don't need to trust, only verify. In this case; the people who have lost faith in the government would need to put that on another centralized authority, with no guarantees.

Africa's modern history is a story of betrayals and failed promises. Yet, people like Akon give hope.

Building an escape route really is not significant in the development of a continent, especially when that safe haven can not accommode everyone.

[stompix]

Here's a useful article and it seems that the construction contract has already been awarded to an American company.

What's funny is that the picture is not actually from Akon's city.
But from another city developed by Senegal's government on their own and called Diamniadio, and it's this one that is actually getting built right now while Akoncity is still in planning and bureaucracy stage.
Even funnier is that it's also located close to Dakar but in a far better position.

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.

You cut the part about

there is nothing even closely resembling Wakanda anywhere on the continent.

While human beings have their roots in the African continent, there was no "civilization" 100 000 years ago, the Neolithic Revolution when the signs of civilization appeared started 12 000 years ago.
Africa might be the birthplace of humans, but there is no place on this Earth that can claim to be the single cradle of civilization.
Besides, that's history, and history isn't filling a hungry stomach, who cares what happened 10 000 years ago if indeed there was an advanced civilization in Africa it makes things even worse looking how the continent is struggling right now.

[Febo]

Why Akon's cryptocity in senegal could work

Crypto and building cities have nothing in common. Yes the city in Senegal can be built. Why not. Population of Africa will increase a lot in next century. There will be many houses and cities needed. But urbanization of Africa have nothing to do with crypto. Yes crypto can help to build it cheaper. Same as crypto can help make everything cheaper. But that is it. Nothing else.

[thesmallgod]

If it is about implementation, forgot it Akon will get it done because he has the required resources to carry out the project. However, this will not be for the poor masses in the region that requires it but rather the elite that will be able to afford it. The project has explicitly indicate that what will be required is the coin that will be used to access the project

[proscratcher]

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.

Energy is not only there problem, bad leadership is their many problem. If there is good leadership the energy will be good and stable buh no, the leaders want to tap and control everything.

I hope they won't try to control akin city.

[ampu]

That's a good idea, but how can we create such a city because the majority of countries have limited economies. It will take huge sums of money to run the city, Africa is running out of resources as multinationals are actively striving. If Akoncity exists in reality, I can think of South Africa, because here the economy is more developed, the facilities are more complete.

[Febo]

Africa’s problem is energy. If this problem is solved, the continent will develop quickly.

How can energy be a problem for Africa?  Solar energy is the future. In Africa is plenty of Sun. Most of all continents. there is also a lot of  place to place solar panels. I would see a bigger problem for Africa in water then in energy. Their Agriculture will have to be such to use little water.

[goldade]

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.

 I do agree with you. However, it should be noted that although all these (shield residents from fiat hyperinflation, providing consumers with options to protect wealth, Free market competition) can happen, it still boils down to the sensitization of the people of the importance and advantage of such huge project. Crypto adoption is relatively slow in Africa due to the fact many of the people there are illiterate. Many can't even read or write not to talk of having a crypto wallet and coins.
We should know that although the project is of immense advantage, transition from the set system of fiat currency is difficult. Many people are not willing to part with fiat that they've been used to  something almost entirely new.

[Dorodha]

The problem in Africa is really very multinational this problem has existed for a long time due to which their economy is very low. It is not easy for the poor to get up but the influential can solve the problem very easily efforts are being made to improve this continent more than before. Many countries around the world are helping to improve the continent of Africa even if it is not stable the world will go a long way in terms of energy.

[wiss19]

We should look at the main purpose he’s doing it, he’s trying to create something different and show the leaders an example of how things should be, the Akon city as planned should be a city that will serve as an example.

I’m strongly hoping that if the project is successful that a lot of leaders, not just in Africa, but around the world would take a step towards making their countries a better place, especially in Africa where the government is fond of neglecting things and only stuffing their greedy pockets. He’s doing a great job, and this will also help to spread cryptocurrency in Africa and make the people to adopt it. It’s a very good idea.