Brazilian president Jair Bolsonaro has criticized the country’s now-suspended crypto project for indigenous people.
Bolsonaro claimed that the new government will soon open “a black box” — a reference to an airplane’s flight recorder — of contracts and projects by state-owned economic development bank BNDES and other institutions. He mentioned that the recent project aiming to create a digital currency for the native population of Brazil has already been cancelled by the government.
According to local daily newspaper Estadao, just a few days before previous president Michel Temer left office, the National Indian Foundation of Brazil (FUNAI) had signed a crypto-related contract with public higher education institution the Fluminense Federal University. The project required the solicitation of R$44 million ($11.7 million) from the federal budget.
As per local crypto outlet Portal do Bitcoin, the contract, among other things, offered to create a cryptocurrency that could circulate among the indigenous population of the country. The budget thus included articles on a feasibility study and development of the platform for the cryptocurrency.
However, on Jan. 3, the government suspended the project, as the contract was signed improperly and lacked technical analysis, Brazilian newspaper O Globo reports. Moreover, the government considered that the contract had been signed too quickly and entailed considerable expenditure.
BNDES, a bank associated with Brazil’s Ministry of Development, Industry and Trade, is responsible for long-term projects aimed at developing the country.
As Cointelegraph Brazil reported in mid-December, the institution also considered launching a stablecoin tied to the Brazilian real to track public money transactions and enable greater transparency for the country, which has long been combating public corruption.
The so-dubbed BNDES token, based on Ethereum blockchain, was scheduled to launch in 2019. As of press time, it was not immediately clear whether the stablecoin project has also been suspended by the government.
Source: , CoinTelegraph
Articles listed with Cash Tech News as the author are either general information, or may have been imported from another website, to bring our readers a rich media experience that encompasses articles that we find interesting, as well as those curated by others.
The views and opinions expressed here are for informational purposes only, and should not be confused with professional financial advice. These opinions are solely those of the author and do not necessarily reflect the views of CashTechNews.com. Every investment and trade involves risk. You should conduct your own research, and contact your professional financial advisor before making any investment.
Corrections, feedback, and ideas should be submitted through the website contact form.