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Jair Bolsonaro, the new Brazilian president who officially took office a week ago, has criticized a project to create a cryptocurrency for indigenous people in a January 7th Tweet.
Bolsonaro has said that the new government will soon open "a black box" – a reference to the flight recorder of an airplane – of contracts and projects of the BNDES state economic development bank and other institutions. He recalled that the recent project that aims to create a digital currency for the native population of Brazil has already been canceled by the government.
According to the local Estadao newspaper, a few days before the previous president Michel Temer left the office, the National Indian Foundation of Brazil had signed an encrypted contract with the Fluminense public university. The project required a request for $ 44 million ($ 11.7 million) from the federal budget.
As for the local Bitcoin portal, the contract, among other things, offered to create a cryptocurrency that could circulate among the indigenous population of the country. The budget then included articles on a feasibility study and the development of the cryptocurrency platform.
However, on January 3, the government suspended the project, as required by the contract issued improperly and without technical analysis, as a detailed description of the project, reports the Brazilian newspaper O Globo.
The contract for the project would have been signed directly between FUNAI and UFF, instead of the legal tender process. Furthermore, the government considered that the contract had been approved too quickly and entailed considerable costs.
BNDES, a bank associated with the Brazilian Ministry of Development, Industry and Trade, is responsible for long-term projects to develop the country.
As reported by Cointelegraph Brazil in mid-December, the institution also took into consideration the launch of a stablecoin linked to the Brazilian real to track public money transactions and allow greater transparency for the country, which has long been fighting public corruption .
The doubled BNDES token, based on the Ethereum blockchain, was scheduled for launch in 2019. At the time of the press, it was not immediately clear whether the stablecoin project had been suspended by the government.
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