Industry Analysis

Brazilian Government stops plans to issue state-backed cryptocurrency

The Government of Brazil is not sure about launching crypto asset

Cryptocurrency has been on the rise for a few years now. This has led governments to consider its implementation in the everyday economy. The Brazilian government had plans to launch a state-backed cryptocurrency, which is aimed at facilitating transactions between indigenous communities. In a recent report, the government has decided to shut down its plans to create a state-backed cryptocurrency.

According to a local news source from Brazil, the Government together with the leadership of President Jair Bolsonaro has given a few reasons to shut down the current project.

This decision was taken based on the size of the project and the contract for the project was also not in direct awarding. They think that there should have been a bidding process of sorts before the project was initiated.

The comment was made in a recent report which explained that the head of Brazil’s Ministry of Women, the Family and Human Rights Damares Alves, suspended a contract. This contract was originally created for the purpose of creating a cryptocurrency for indigenous communities. It was reported that this contract had also already gained massive popularity amongst locals in Brazil.

Bitcoin development in the developing countries

Coming from a local news source in the media in Brazil, it was said that the crypto contract contained the financial details for a great project. As well as, the study and diagnosis of socioeconomic viability of the creation of an indigenous cryptocurrency development on a cryptocurrency platform.

“The project included an agreement through which the National Indian Foundation (FUNAI) of Brazil granted a budget of 44 million raised ($11.67 million) to the Universidad Federal Fluiminense (UFF) for its implementation.”

The creation of this cryptocurrency has been a named Bitcoin of the Indian. The coin is describe as a social cryptocurrency intended to circulate among the Brazilian indigenous population. The project is currently on a stand still and the President Jair Bolsonaro has not made any official statement regarding his stance on the cryptocurrency.

What are your opinions on the decision of the Brazilian government stopping the project? Feel free to leave a comment down below.

coinmag

My occupation is the Research of blockchains and their practical applications in the economy. I have graduated through various levels of education, including electrical technique, Business, Psychology, and innovative technologies.

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