A Chinese consortium will be working along with Philippine authorities in the building of a “financial technology city”. Also known as a preferential economic zone, the area will house a cryptocurrency exchange, a cryptocurrency farm, fintech start-up incubators, and a blockchain center. The agreement was signed between Sinosun Subic Bay Holdings Corp and the Philippines’ Cagayan Economic Zone Authority. Included in the agreement is a feasibility study set to be commissioned by Sinosun in order to create opportunities for investment at the Cagayan Special Economic Zone and Free Port or CSEZFP.
A 20-megawatt power plant is set to be built in Cagayan with the goal to power a slew of cryptocurrency mining activities. The Chairman of Sinosun, Samuel Lim, explained that
“cryptocurrency farming needs a lot of electricity” thus the company’s decision to make power generation a priority. The study is expected to similarly cover railway links, power generation, port expansion, road networks, hotels and resorts, and tourism-related developments.
According to Lim, the power plant’s construction will take place in 18 months. 10,000 mining machines will also be imported and its arrival will occur in four months. As much as 50,000 cryptocurrency mining machines are expected to be operational. The blockchain community has considered the Philippines as a digital-currency-friendly country. The initial leg of the Blockchain & Bitcoin Conference saw Manila as its host. The country is one of the first in Asia to address the increasing demand for virtual currency. The Securities and Exchange Commission (SEC) of the Philippines has no plans to issue a ban on ICOs or initial coin offerings as he reiterated the country’s belief that the public can use technology for its benefit as long as it is done so appropriately. However, SEC assures that individuals or companies that are taking advantage of blockchain technology for illicit activities will be dealt with appropriately.