Brazilian Bank Targets Ethereum Blockchain to Issue Stablecoin
Despite all difficulties cryptocurrencies have confronted in the fast few months, there is yet some hope for them to be applied for future smart contracts and by those interested in using the decentralized system. Ethereum is one that is known as the best platform, and recently Brazilian Bank has published good news about issuing a Stablecoin on its Blockchain. It intends to make this coin balanced to the national currency.
A pilot test in the next year January via a token named BNDES by the Brazilian National Social Development Bank whose value equals Brazilian Real per unit and based on Ethereum Blockchain will disclose all probable weaknesses and benefits of this well-known Blockchain. Furthermore, the possibility of its conversion to the local money is its influential feature. It had been such experiments before, with the Stablecoin and now it is used as a cultural contribution to the institutes which have the problem in paying their tax.
Due to its risky nature, the need to put minds together in order to reach the best possible solutions seems vital. Therefore, ConsenSys, the Ethereum design studio which is an advising company in this project, took part, albeit without publicizing details of its cooperation and just outlining its priorities by Joe Lubin, its founder. He claims that his company will become an advisory in Blockchain, token design, and architecture.
Alex Van, an Ethereum foundation developer, cooperates with the project, by way of applying this foundation’s virtual product. All active filmmakers can make benefit from the real-time financial records.
Their testing first step is to issue BNDES with a value equal to hundreds of Dollars on a National Film Agency (Ancine) who is active in film distribution; however, the aimed money will be spent on movie making and promotion as well as script production.
The trial will use the National Registry of Taxpayers’ (CNPJ in the Portuguese language) electronic identification certificate customarily used in Brazilian companies for documentation.
Because of Blockchain transparency, the banks can again revive trust in financial institutes in people. BNDES might be able to fade away some misdeeds like misallocated funds which has caused people to get skeptical about the banks’ demeanor.
Cryptocurrency traders have usually used stablecoins to keep the value of their accounts and be able to change it into other cryptocurrencies without referring to the banks. A more profitable mission the Exchange companies like Paxos, Gemini, and Coinbase have reached is adding fiat-pegged cryptocurrencies.
There seems that crypto and Blockchain specialists welcome these kinds of projects and they acknowledge in their positive and effective impact.