It was previously reported that the Brazilian government has plans to launch a state-backed cryptocurrency, aimed at “facilitating transactions between indigenous communities”. Based on a recent report, the same government under new leadership has decided to shut down its plans to create the state-backed crypto.
New President Shut Down State-backed Crypto
According to a local news source, the Brazilian government under the leadership of President Jair Bolsonaro has also given some reasons for the shut down of the project. It was explained that base on the size of the project, the contract for the project was not meant for direct awarding. A bidding process was necessary before a project of such size get awarded.
This was made known in a recent report which explained that the head of Brazil’s Ministry of Women, Family and Human Rights, Damares Alves, has suspended a contract which was originally created for the purpose of creating “a cryptocurrency for indigenous communities”. It was also reported that the contract has already “gained massive popularity among locals”.
Bitcoin of the Indian
According to a report from a local news media, it was stated that the crypto contract not only contains the financial details of the project. It also contains:
the “study and diagnosis of socioeconomic viability of the creation of an indigenous cryptocurrency; development of the cryptocurrency platform; and implementation of that platform,”
It was also reported that:
“The project included an agreement through which the National Indian Foundation (FUNAI) of Brazil granted a budget of 44 million reais ($11.67 million) to the Universidad Federal Fluiminense (UFF) for its implementation.”
The cryptocurrency, to be created has already garnered itself a nickname “Bitcoin of the Indian,”. The coin was then described as “a social cryptocurrency intended to circulate among the Brazilian indigenous population.”
Since his swearing in, President Jair Bolsonaro has not made any official statement regarding his stance on cryptocurrency.