Ethereum to support stablecoin issuance by a Brazil state bank

  • The stablecoin is pegged to the Brazilian real.
  • Recipients of the stablecoin to withdraw Brazilian national currency via the state-owned bank.

A report by CoinDesk, a crypto news website revealed that a state-owned commercial bank in Brazil is preparing to launch a stablecoin using the Ethereum protocol. The bank referred to as the Brazilian National Social Development Bank is expected to run a pilot of the new coin come January 2018. The stablecoin is pegged to the Brazilian real. The project has been in development phase since the beginning of 2018.

A Brookly New York-based Ethereum design studio, ConsenSys is a said to be among the parties that will offer consultancy services to the bank in regards to the entire process. The consuktancy firm refused to comment on the project, however, it confirmed its involvement in the process. According to CoinDesk:

“For the pilot, the bank will issue several hundred dollars’ worth of BNDES to the National Film Agency, a film distribution company called El Cine for short, to create and promote scripts and movie productions in Brazil.”

A comment by a systems development manager, Vanessa Almeida at the bank states:

“We can enforce rules using smart contracts. The company that receives the money can only spend it with companies that are working within the [film] sector.”

The stablecoin project was developed with the assistance of an Ethereum Foundation developer by the name Alex Van De Sande. Its purpose to ensure that filmmakers in connection with the nonprofit EL Cine are able to gather and distribute live financial data. The stablecoin can be redeemed via the bank using the national currency of Brazil.

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