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World Bank Explores Blockchain Tokenization for Infrastructure Financing Amid Regulatory Hurdles

The World Bank is exploring the use of blockchain technology for tokenizing infrastructural projects, according to a 49-page report. The report outlines the benefits of digitizing debt financing processes for global infrastructure projects, with a focus on democratizing funding and improving transparency through the use of blockchain and smart contracts.

However, challenges to full-scale adoption include the lack of a globally recognized tokenized standard, cybersecurity concerns, and legal issues surrounding smart contracts and digital tokens. Emerging markets face the greatest challenges to implementing tokenization due to a lack of regulatory frameworks and pilot programs, but stand to gain the most from improved private sector confidence, lower financing costs, and automated auditing.

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