Jair Bolsonaro, the new president of Brazil, who officially took office a week ago, criticized a project proposing to create a cryptocurrency for the indigenous population. Reported on Twitter on January 7th.
Bolsonaro said that the new government will soon open a "black box" of contracts and projects of the state bank (BNDES) and other institutions. He mentioned that a recent project aimed at creating a digital currency for the indigenous people of Brazil has already been canceled.
The project to create cryptocurrency for the indigenous population
According to the local daily newspaper, Estadao, just a few days before the previous president Michel Temer left his post, the National Brazilian Company (FUNAI) signed a contract with the state higher education institution - Fluminense Federal University. The project required 11.7 million US dollars from the federal budget.
According to the local cryptocurrency portal, Portal do Bitcoin, the contract, among other things, proposed to create a cryptocurrency that could be distributed among the country's indigenous population. Thus, plans for a feasibility study and development of a cryptocurrency platform were included in the budget.
Stop the project
However, on January 3, the government criticized and canceled the creation of a crypto project, as the contract was improperly signed and did not have a technological analysis, according to O Globo (Brazilian newspaper). Moreover, the government considered that the contract was signed too quickly and entailed considerable expenses.
Editor: Alyona Nabok