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World Bank explores tokenizing infrastructure projects

infrastructure construction bridge

The World Bank has published a report exploring blockchain for infrastructure projects such as roads, power plants and renewable energy projects. The authors aim to help the World Bank decide whether to conduct a proof of concept tokenized security to test the waters.

The Global Infrastructure Hub estimates a $15 trillion finance gap for infrastructure projects between 2018 and 2040. Around $3-$4 trillion is spent annually on infrastructure, with governments covering most of it. In 2019 private investment in infrastructure through primary issuances amounted to just $106 billion. With COVID stretching government budgets, there’s a desire to tap more private sources of finance.

However, many public infrastructure projects have minimum investment sizes of $1 million, making them only accessible to institutions or ultra high net worth individuals.

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