Why most ‘crypto cities’ flop — and the blueprint execs say might work

Multiple attempts to build autonomous "crypto cities" powered by blockchain, such as Akon City and Satoshi Island, have largely failed due to overly ambitious goals of complete separation from wider society. Experts suggest that the focus should shift from building entirely new, autonomous structures to modernizing existing economies by embedding blockchain technology for transparency and trust, effectively making every city a "crypto city" through technological upgrades.

While creating a purely self-sovereign city in international waters is theoretically possible, it faces immense practical challenges, including security threats, lack of essential services like hospitals, and inevitable conflict with established governments over taxation and law enforcement. Kadan Stadelmann of Komodo noted that the risks of total sovereignty multiply these issues.

The consensus among executives is that a more realistic blueprint involves creating special, crypto-native zones or regulatory sandboxes within existing, state-backed cities like Dubai. These zones would benefit from established governance, licensing, and immigration frameworks, allowing for the responsible testing of new technologies like tokenized property rights, while feeding lessons back into national policy rather than attempting to create isolated "walled gardens."

(Source：Cointelegraph)