Ethereum News: The Brazilian National Social Development Bank announced its plan of issuing a stablecoin based on the Ethereum blockchain. Dubbed as BNDES, the token will be pegged to the national currency and its one unit will be backed by one unit by the Brazilian Real.
The pilot of the same is going to launch in January 2019. Hosted on Ethereum network, the bank has performed many experiments with the coin throughout this year. It will serve as a tax-deductible contribution to institutions. ConsenSys is involved in the project, although the extent of its involvement is not disclosed as of now.
The announcement falls in line with ConsenSys recently stated list of priorities by Joe Lubin. The founder of ConsenSys, stated that the company will renew its focus and now aims at evolving as a blockchain advisory specializing in token design and architecture.
Hundreds of dollars in BNDES will be issued to the Brazilian National Film Agency, during the pilot. The film distribution company, typically referred to as EI Cin will utilize the funds to create and promote movie and script production in Brazil.
This new system is evolved to eradicate the current issues with misallocation of funds and rumours of bribery that has been plaguing the current banking scene of Brazil. The transparency brought through the decentralized technology will aid in gaining back the public’s trust.
National Registry of Taxpayers (Cadastro Nacional da Pessoa Jurídica, or CNPJ) will use an electronic identification certificate, a widely accepted document for such transactions. Vanessa Almeida, the development manager of the project said:
“We can use smart contracts to enforce rules only companies that are working with the film sector will be able to use. We have an already existing identifier in Brazil that is licensed to send tokens to companies that will have to sign with the certificate. This way, we would know which address to send the token to.”
Alex Van, a developer at Ethereum Foundation was majorly involved in the completion of the project. With the project in place, the filmmakers that are associated with EI Cine will be able to collect and share financial records in real-time. Recipients will redeem the stablecoins via the bank and get the local currency in return.
The data collected can be used to inform or develop future use of cases. The information can guide public policies giving the government a better map of the economy.