World Bank Turns To Blockchain
Following the release of a report on tokenization for infrastructure projects, the World Bank may pivot to blockchain technology in the future.
The 49-page report highlights the advantages of using blockchain to digitise debt financing processes for global infrastructure projects. A large portion of the report focused on the World Bank’s use of blockchain in the face of dwindling funding sources, but it also highlighted several challenges to full-scale adoption.
The report identified two ways tokenization with blockchain could improve World Bank processes right away. The first goal is to democratize funding to a broader range of investors by tokenizing infrastructure securities and reducing issuance costs and time.
The use of blockchain to improve the transparency of processes, particularly those related to budgets, is the second application identified by the report’s authors. The World Bank’s contractors and subcontractors can avoid disputes by leveraging blockchain and smart contracts, which rely on the immutability of blockchain-based transactions.
(With inputs from Shikha Singh)
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