Brazilian Government Suspended A Crypto Project Initiated By The Previous Government For Locals

Jan 7, 2019 at 13:30 Update Date :Jan 7, 2019 at 13:30 UTC

An initiative of last government to promote and create a cryptocurrency – in order to facilitate the transaction between locals has been suspended by the new president of Brazil under the new Brazilian government. The Brazilian government gave its own reason to shut down the project that was started for the welfare of the indigenous communities.

As per the reports published by the local newspapers of Brazil, the top official of Ministry of Women, Family, and Human Rights – Government of Brazil suspended the contract for the development of the project that was focused on the creation of digital currency – to facilitate the local communities.

It has been noticed that the country’s new executive cabinet, headed by Damares Alves has made this move because the project started under the previous government was gaining a lot of popularity among the locals.

The crypto project included an agreement that made around $11.67 million grant from the National Indian Foundation (FUNAI) of Brazil. The grant was given from FUNAI to the Universidad Federal Fluminense (UFF) to make the project applicable.

As per the reports of the local media, the plan further involves the “Study and diagnosis of socioeconomic viability of the creation of an indigenous cryptocurrency; development of the cryptocurrency platform; and implementation of that platform.”

The cryptocurrency (which was planned to invent) was nicknamed as “Bitcoin of the Indian”. The so-called ‘Bitcoin of the India’ would work as a social digital currency – aimed to circulate among the local citizens of Brazil.

The current government believes that due to the crypto amount, the adjudication should be given via bidding. However, it was directly granted prior to Jair Bolsonaro coming into his presidency.

Reacting to the allegations, Wallace Bastos stated that it was not a direct adjudication as the new Decentralized Execution Term (TED) is all valid as per the legal provision of the country.

The Universidad Federal Fluminense (UFF) has not clarified anything on the issue. As per the rules, in a situation like this, an official statement is issued on behalf of the university.

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