The development of the Chinese government supporting the construction of a ‘Blockchain City’ was announced in a press release on 26 April 2019. It is planned to be situated in the critical shipping lane of the Malaysian Malacca Strait. This project backed by the Chinese government aims to transform Malacca City into blockchain city which will be named as Melaka Straits City.
This project has been jointly launched by China Wuyi, construction and engineering company, and the investment network, SWT International Sdn Bhd. According to the news report, they plan to base the entire infrastructure of the city on blockchain technology. It will have its own DMI platform offering the dmicoin. It will be used for paying government-based services within the city and it will also feature an exchange which will enable tourists of Melaka Straits City to exchange their fiat currencies for dmicoins.
China Wuyi Co., Ltd. is engaged in real estate investment and development and was set up in 1996. It is involved in areas such as real estate development, purchasing, trading, construction general contracting, and international engineering contracting. It is headquartered in Fuzhou, China.
SWT International Sdn Bhd (SWT) is a fast-growing enterprise which focuses on environmental protection and alternative energy businesses. It is engaged in construction and operation management, property development, and integrated technology development. Its core areas are renewable energy and infrastructure development, township development, and solid waste management. Its research and development and construction bases are located in Fuzhou, Shenzhen, and Beijing respectively.
Lim Keng Kai, the CEO of the project stated that:
“When tourists visit Melaka, they will be required to exchange their money into digital currencies that they can use to pay for services using their mobile phones or computers. The DMI web application will be available on PC and mobile applications will run on Android and iOS devices to provide flexibility regardless of the preference of the individuals.”
“Malacca”, regarded as the “historic state” is located in the southern region of the Malay peninsula in Malaysia, next to the strait of Malacca. They plan to allocate 200 acres of the marine area and build chalets or water recreation facilities. The blockchain city will not function only for business enterprises and educational services, but will also be a major tourist attraction. The Ministry of Tourism of China predicts the number of yearly visitors to be about 3 million tourists.
Blockchain city will be constructed in 635 acres of reclaimed land. The territory is owned by SWT International. It mainly focuses on the areas of tourism and sustainable development. The company’s activity is based on the innovative production of energy for waste incineration. Last June, South Korea revealed its plans to launch a blockchain center in Busan City which was modeled on the Zug-based crypto valley of Switzerland.
China expands its presence in the Pacific region by investing in municipalities and infrastructure. A report by International Data Corporation (IDC) reveals that spending on smart city technologies is expected to increase to $135 billion by 2021.