The government of São Paulo, Brazil, is joining hands with a U.S. firm for a cryptocurrency based initiative that aims to improve the State’s infrastructure.
The firm that will partner with São Paulo government is CG/LA Infrastructure, a Washington based company led by Norman Anderson, who formerly served President Donald Trump as an informal advisor.
The program will start with a project for public-private partnership (PPP) and will initially focus on improving the lighting infrastructure within the State.
Where does cryptocurrency come into this?
As part of the project, the engineers and other team members that are recruited for the program will be receiving part of their compensation in a new cryptocurrency called BuildCoin.
BuildCoin and its related platform will be created within the current year, from the country of Switzerland. It plans to do so with an investment offer of at least $55 million, and it will be targeting the construction industry as its primary audience and investment segment.
BuildCoin aims to be adopted as one of the primary methods of compensation in the construction industry. While it may certainly be difficult at first, the company plans to achieve this goal through long-term planning and offering more and more benefits with the native token as the platform continues to grow and obtain more users and attention from all over the world.
The company plans to have that done through expanding BuildCoin’s usage from a speculative cryptocurrency of a company to something that is accepted throughout various parts of the construction industry, regardless of where BuildCoin’s users are located.
BuildCoin plans for its partners to offer services and products such as training programs and building materials in exchange for using BuildCoin as an alternative to traditional currency.
However, the government of São Paulo explained that cryptocurrencies are volatile regarding investment, and any party that wants to join in the initiative should do so after an assessment of the risks involved.
That being said, Bruno Freitas, who belongs to the Innovation Unit of the Secretariat, stated that while there is no state spending on the project and it is being practiced as a standard procedure for PPPs, it would be correct to think that the cryptocurrency of BuildCoin will rise in value over time.
“The more the crypto-coins are accepted and used, the more valued they become. We are encouraged by the possibility that this succeeds and hoping for it to work.”
More details about the program
It was reported that the partnered program of São Paulo government and CG/LA would be focusing on improving the lighting infrastructure of participating municipalities from the State.
According to the program, municipalities with a population of 100,000 or more will be able to apply to compete for the project. The selected applicants will be announced within 90 days of the program’s formal initiation, and the projects will be completed within 6-8 months.
The ICO for BuildCoin is currently live on its website.