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Brazil’s “Indigenous Cryptocurrency” project suspended by the New President

President Jair Bolsonaro

As per the latest information revealed via social media, the office of the Brazilian President Jair M. Bolsonaro has closed down a project that was assisting Brazil to launch an “indigenous cryptocurrency.” The President himself announced via Twitter.

The above disclosure came during criticizing about the “BNDES black box” while mentioning the contracts associated with the National Bank for Economic and Social Development (NBESD). NBESD is a federal public company associated with the Ministry of Development, Industry, and Trade with the primary objective of enhancing Brazil’s development through financing projects.

The President tweeted “With only a few days of government, not only the black box of BNDES, but other bodies are being raised and will be released. Many contracts have been broken down and will be exposed, such as the $ 44 million to create indigenous cryptodeo that was barred by Minister Damares and others.” (As translated to English)

The project for the “indigenous cryptocurrency” was worth $12 million and got stopped by the New Brazilian President as the contract for the project was not assigned by following the traditional bidding process, instead it was assigned directly and was signed by the National Indian Foundation (Funai) and the Fluminense Federal University (UFF).

As per the news report released on 2nd of January in Estadao, Damares Alves, the country’s Minister of Human Rights, Family, and Women, prohibited a project that included the development of the “indigenous cryptocurrency,” and suspended it accordingly.

The contract was signed on 28th December which was just three days before the mandate of the former president, Michel Temer, ending. The contract was termed as a ‘Bulky’ contract as it involved a huge amount of investment. The contract was not just confined to the development of the cryptocurrency but also to enhance other services such as functional mapping and a territorial database.

Further, the development and upbringing of the cryptocurrency thing into the market was categorized as an “innovative idea” which would result in an “alternative currency for the natives, which could transform the reality of these people.”

Wallace Bastos, the president of Funai, had earlier stated during the time of awarding the contract that it was awarded through a “Decentralized Execution Term.” When questioned on the period of signing the contract as to why was it done so close to the end of Temer’s mandate he stated that ”[The resources] were made available through a Bill that was only approved and sanctioned in mid-December.”

Further, as per Globo, Funai employees stated that the work to be executed under the contract was of “questionable technical relevance,” and that people “without technical analysis of any sector” had been employed for the project.

The cryptocurrency market in Brazil has had a fast-growing movement. In the previous year, several cryptocurrency exchanges were experiencing difficulties in dealing with local banks. However, even in such a hard situation, only one exchange Bitcoin Max has managed to sustain and reopen its account.

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