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Brazilian Bank to Issue National Cryptocurrency Next Year

Redwan Eid | Dec. 18, 2018
Brazilian Bank to Issue National Cryptocurrency Next Year

December 18, 2018 AtoZ Markets – The Brazilian National Social Development Bank is reportedly preparing for issuing its crypto token, which is said to be in parallel with the value of the national currency.

The reports the media published yesterday read that the above mentioned bank is set to launch a pilot in 2019 for the BNDES token, which works on the ethereum blockchain.

The pilot referred to is backed 1:1 by Brazilian real, which is coming after the bank’s experiment with the stablecoin has rather matured after having tested it along the soon-ending year. The bank will use the stablecoin for tax-deductible contributions to cultural institutions.

The bank will reportedly issue many BNDES of a value worth to hundreds of dollars, as the media reported, as well as allocating a high budget for supporting the film industry in the country.

The bank’s history of bribing and corruption pushed for a reformative initiative

The step comes in endeavours to polish the bank’s reputation, which was over the years associated with corruption and bribes after scandals of misallocated funds, in hope the new BNDES blockchain project helps the bank regain some trust in clients' eyes.

The media reported that the initial phase of the project will mainly depend on electronic identification certificates from the National Registry of Taxpayers’ (Cadastro Nacional da Pessoa Jurídica, or CNPJ) on which Brazilian companies depend official registration documents.

In her turn, Vanessa Almeida, a BNDES systems development manager, said that smart contracts are in her team’s consideration to utilize for implementing the regulations.

“We have a kind of ID in Brazil that has a certificate to send a token to the company, the company has to sign with this certificate…we will know in advance to which address you can send the tokens.”, continued Almeida with regard to CPNJ identifiers.

Implementing new rules with regard to taxes in Brazil has been in the new frequently during the current year, where the financial authorities in the country were already said to have requested monthly reports on the operations of digital assets in the country, upon releasing a new set of regulations that requested all the companies in the country involved in trading with cryptos to “declare their identities”, in addition to the number of transactions they have, as AtoZ Markets reported earlier. 

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.