The Brazilian Development Bank (BNDES) is planning to issue a stablecoin using the ethereum protocol.
BNDES is a federal public company associated with the Ministry of Development, Industry, and Trade of Brazil. The bank offers financial support lines and programs to companies of any size and sector that have been set up in the country. Its partnership with financial institutions with agencies established around the country facilitates the dissemination of credit, enabling greater access to BNDES’s financial services.
The bank recently announced that it will be launching a pilot in January 2019 and will be using an ethereum-based stablecoin, called BNDES token, for tax-deductible contributions to cultural institutions. The pilot, which will be conducted in partnership with blockchain firm ConsenSys, will involve issuing BNDES tokens to the Brazilian National Film Agency (ANCINE) to support the creation and promotion of scripts and movie productions in the country.
The objective of the project is to allow Brazillian filmmakers and movie industry workers associated with the National Film Agency to collect and transact their funds in real time. Brazil’s National Registry of Taxpayers’ (Cadastro Nacional da Pessoa Jurídica, or CNPJ) will be issuing the identification certificates for this trial.
Vanessa Almeida, a BNDES systems development manager, said that the pilot will be enforcing rules using smart contracts to ensure that “the company that receives the money can only spend it with companies that are working within the film sector.”
“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,” Almeida said. “We will know in advance to which address you can send the tokens.”
Commenting on the news, Rosine Kadamani, founder of Brazil’s Blockchain Academy, said that if the stablecoin project proves successful, it will help bolster trust in state-owned banks.
“Brazil is very well-known for corruption; there’s a lot of questioning about the use of public funds,” said Kadamani. “They start with a stablecoin that is basically an accounting control because everything goes back to the bank. But in the future, if it works well, there are other implications … The concept we have could be used for other institutions in Brazil or the government as a whole.”
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