The Brazilian state São Paulo is looking to cryptocurrency to help solve its infrastructure problems.
The state, home to 45 million residents and the city of São Paulo – the largest metropolis in the southern hemisphere and the third-largest in the world – plans to use a token called buildcoin to pay engineers across the globe for feasibility studies. These studies are required to assess the practicality and justify the expense of large construction projects.
To test the concept, São Paulo will crowdsource and finance studies this way for the Ilumina SP program, which aims to swap out antiquated public lighting systems for newer and more efficient alternatives.
If successful, the blockchain solution could be a workaround for governments that want to invest in infrastructure, but lack either the money to pay for credible independent studies (which are needed to attract outside investors and get the ball rolling on projects) or access to the needed expertise.
“We like innovation in São Paulo, and blockchain and cryptocurrencies are being followed as extremely interesting innovations that we had to start experimenting with,” Hélcio Tokeshi, secretary of treasury for the state of São Paulo, told CoinDesk.