This Brazilian Bank Is Using Ethereum to Issue a Stablecoin

[boss.afro]

The state Brazilian National Social Development Bank intends to issue a cryptocurrency token tied to the Brazilian real. It is reported by CoinDesk.

A pilot project for the release of the BNDES token on the basis of Ethereum will start in January next year. At first, the coin will be used to Finance cultural institutions. In particular, the Bank will allocate a number of new tokens to the local film Agency.

As notes the edition, experiments with steilcoom the Bank held during 2018. The well-known Ethereum startup ConsenSys will become a consultant of the project for the release of a new "stable coin".

According to representatives of the Bank, the issue of the BNDES coin will help restore public confidence in the state banks of Brazil, which are often criticized because of corruption scandals.

"We can follow the rules prescribed in smart contracts. The recipient company can spend it only on goods and services of companies working in the film industry," said the representative of the Bank Vanessa Almeida.

Also, the Bank is confident that in the future, stablecoin can be used to Finance organizations and projects from various fields.

It should be noted that recently in Brazil there is a tendency to liberalize the regulation of the crypto industry. Thus, in October, the Brazilian securities Commission allowed local investment companies to invest in the cryptocurrency ecosystem through the acquisition of derivatives and shares in foreign funds. It is noteworthy that at the beginning of the year, the same financial regulator declared a ban on both direct investment in cryptocurrencies and indirect investment through intermediaries represented by foreign companies.

source forklog.com

[cryptocrusher]

I don't know about the state of Brazil's politics and finance too much but I must admit I am skeptical of this knowing how cryptocurrencies are being used in some other currencies (cough cough Venezuela).

As long as this is legitimate and used for good then it sounds very promising. The public ledger from blockchain is a great opportunity for governments to show their spending and for the public to keep them accountable. Let's hope this is the start of something more serious and it can go beyond just the film industry.

[NeuroticFish]

According to representatives of the Bank, the issue of the BNDES coin will help restore public confidence in the state banks of Brazil, which are often criticized because of corruption scandals.

First of all, many stable coins work on ETH network, USDT and GUSD are part of that list.
Second, a stable coin is just as centralized as fiat and you have to trust the issuer they'll do all the needed things to keep the price stable.
Now, with such silly politicianistic nonsense as in the quoted text, I would clearly stay away from this coin (even more than the other stable coins).

[Zayn_Nazy]

First of all, many stable coins work on ETH network, USDT and GUSD are part of that list.
Second, a stable coin is just as centralized as fiat and you have to trust the issuer they'll do all the needed things to keep the price stable.
Now, with such silly politicianistic nonsense as in the quoted text, I would clearly stay away from this coin (even more than the other stable coins).

I think this bank just want to some advantages of cryptocurrency to operate their system.

[chairmanMao]

This is another affirmation of Ethereum, so investors do not have to worry that Ethereum will disappear, Ethereum will only depreciate, because Ethereum is a real technology, it has value. Such an event made the Ethereum investors feel a little comfort.

[QueenCryptomarket]

Another good news about cryptography in general and about ethereum in particular. I am constantly looking for good news from the crypto space. And I want to promote this news. Thanks to the author of this topic. May good luck accompany cryptography in Brazil and be a good example for other countries of the world.

[Psec]

In as much as stablecoin is more like fiat but this is still a good news for the industry and it is an indication that Cryptocurrency is here to stay and government around the world will have nothing to do than to support this innovative idea.

[cryptogeek101]

The state Brazilian National Social Development Bank intends to issue a cryptocurrency token tied to the Brazilian real. It is reported by CoinDesk.

A pilot project for the release of the BNDES token on the basis of Ethereum will start in January next year. At first, the coin will be used to Finance cultural institutions. In particular, the Bank will allocate a number of new tokens to the local film Agency.

As notes the edition, experiments with steilcoom the Bank held during 2018. The well-known Ethereum startup ConsenSys will become a consultant of the project for the release of a new "stable coin".

According to representatives of the Bank, the issue of the BNDES coin will help restore public confidence in the state banks of Brazil, which are often criticized because of corruption scandals.

"We can follow the rules prescribed in smart contracts. The recipient company can spend it only on goods and services of companies working in the film industry," said the representative of the Bank Vanessa Almeida.

Also, the Bank is confident that in the future, stablecoin can be used to Finance organizations and projects from various fields.

It should be noted that recently in Brazil there is a tendency to liberalize the regulation of the crypto industry. Thus, in October, the Brazilian securities Commission allowed local investment companies to invest in the cryptocurrency ecosystem through the acquisition of derivatives and shares in foreign funds. It is noteworthy that at the beginning of the year, the same financial regulator declared a ban on both direct investment in cryptocurrencies and indirect investment through intermediaries represented by foreign companies.

source forklog.com

If the news information about Ethereum you are giving is real then it's a welcome development to the cryptocurrency community, it also will help boost the world financial economy and create liquidity

[ivanleon]

I read this news about the Bank in Brazil, I liked this news, although I did not immediately understand why the Bank is now to do so? But the Ethereum blockchain gives a high level of transparency, which will certainly lead to an increase in trust, but the population is unlikely to be happy with such a speed of transactions. Although it's the right move, I approve.

[bitmover]

First of all, many stable coins work on ETH network, USDT and GUSD are part of that list.

Hey, just a small correction. USDT is not an erc20 toekn,  it is a coloured coin and it runs in the BITCOIN network.
It runs on Omni layer.


About the topic, bndes is a public bank that is planning to release this stable coin. It is different from Venezuela approach, and I believe that if it succeeded it will be good for the ecosystem.

[IgorShumilo]

More and more centralization is coming to the crypto, this is not at all what Satoshi wanted. But I understand that without banks and state control there will be no development of a cryptocurrency world. I really hope that we will see development, and not total control and containment of cryptocurrency.

[Renaldi blackspadeteam]

honestly in my country, it also has a similar problem, because a lot of people are corrupt, and if the Bank believes that in the future, stablecoin can be used to finance organizations and projects from various fields, I think it's cool, and maybe cryptocurrency will continue the war against economic injustice in world

[BitcoinHodler]

the bank has to actually be so broke and desperate to do something so pathetic like this.

if you look at other banks there are about a couple of dozens of them working on adopting the blockchain technology for themselves and adapting it to their own systems and create a new stand alone coin they can control. not bank in their right mind would ever rely on another token that can go any direction that their devs choose! that is a huge risk.but when they create their own coin they can direct it any direction THEY want.