Brazilian Bank-owned Stablecoin BNDES Backed by BRL to be Used as Funding for a Documentary
Brazillian National Bank for Economic and Social Development (BNDES) is funding a documentary using its ERC-20 token BNDES Token, according to reports by Cointelegraph in Brazil. The documentary is to be produced in collaboration with local cinema producer Elo Company.
The token which is based on the Ethereum blockchain is to be backed by the Brazillian federal bank that will eventually use the token for improved transparency in the bank’s financial activities. The token has reportedly been under development since 2018 and has had its first proof-of-of-concept in collaboration southeastern state of Brazil, Espírito Santo.
It would seem that Brazillian government is becoming very crypto friendly with the support it is giving BNDES Token. The new Brazillian president Jair Bolsonar also challenged a local cryptocurrency firm to create a cryptocurrency for Brazillians. Unlike countries like the U.S, Brazillian regulatory authorities and the central bank are aware of BNDES and are fully in support of it.
Venezuela is another South American country that has created its own cryptocurrency, Petro. The cryptocurrency which is backed by the Venezuelan oil reserve however has not been very successful as an option to the local currency the Bolivar. At least the country has been receptive to cryptocurrency like Brazil
So far, not many countries have accepted cryptocurrency for regular use, let alone approve the creation of its own cryptocurrency. The U.S has been in a struggle against cryptocurrencies for a long time and is still on. A parliament member of recent moved for the complete ban of cryptocurrency because it could take over the influence of the U.S Dollar.
With Brazil launching its own cryptocurrency, the country could soon become a hub for cryptocurrency startups like the Philippines. As the world tends towards digital currency, this could potentially be good development to the Brazillian government and its people.