The city of the Strait of Malacca, located in Malaysia, will become the first city in the world where cash is prohibited and only cryptocurrencies are used.
The initiative to create a completely crypto city is being promoted by the Chinese government. The construction and engineering company China Wuyi and the investment network SWT International Sdn Bhd jointly launched the project to build the first crypto city. The founders of the project plan to raise 500 Malaysian Ringgits (USD 120 million) during the initial stage.
According to local sources, the city will have an infrastructure based on blockchain technology, with a DMI coin platform offering its native DMI currency. The coin DMI will be used to pay for public services within the city and will have an exchange system that will allow tourists to exchange their fiduciary coins for DMI coins.
According to the British media The Sun, Lim Keng Kai, representative of the crypto city of Malacca, said that «When tourists visit Melaka, they will be required to change their money to digital currencies that they can use to pay for services using their mobile phones or computers. »
Also he said: "The DMI web application will be available on PC and mobile applications will run on Android and iOS devices to provide flexibility regardless of user preferences."
The promoters of the project intend to make it the largest tourist destination in Malaysia and expect it to attract three million visitors a year.