This Is How Akon’s $6B Cryptocurrency City In Senegal Will Work

From public transportation to taxes, singer Akon’s $6 billion-worth upcoming smart city in Senegal aims to work with the government to eventually spread the use of crypto across Africa.

Through blockchain technology, everything inside Akon City would utilize Akoin cryptocurrency tokens, said Jon Karas, the co-founder and president of cryptocurrency Akoin. Speaking to Cointelegraph, Karas said blockchain would be used for dealings like taxes, import duties and trade-related items.

"You can get on and off the tram and pay with your crypto-related card with an infinitesimal piece of Bitcoin or altcoin," Karas added. Noting the blockchain would make the city become more futuristic and seamless, the co-founder believes Akon City would become a model of how the technology can be used by other countries in Africa.

"Our belief is that blockchain tools and services will be one of the key things that will help Africa to rise in the coming decade," Karas told the crypto news outlet. The smart city would take some inspiration from the Crypto Valley in Switzerland.

Set to be completed by 2030, the Akon City project has signed a $6 billion contract with KE International, a U.S.-based construction engineering firm. It has also raised another $4 billion to be used for the first phases of construction. Phase 1 will begin next year.

Powering Akon City is cryptocurrency Akoin. Aimed to be used in Africa, Akoin is a utility token that can be used for, among other things, swap cryptocurrencies and even mobile phone credits, an important store of value in the continent. With regards to mobile phone credits, the Akoin platform will leverage existing networks of prepaid minute vendors to provide financial services, the whitepaper for the Akoin cryptocurrency published in March stated. Akoin could also be used for microlending, microraffles, payment and crowdfunding.

In an earlier statement, Akon spoke about the stability problems of the many currencies in Africa. "It got to the point where the day-to-day African people don't even use the currencies anymore, they're using their cell phone minutes and credits as a way of trading for basic goods like produce," he told Cointelegraph, adding that he was planning to build cities similar to Akon City across Africa.