JairBolsonaro, the new Brazilian president who has formally taken workplace a week ago, has criticized a project offering to create a cryptocurrency for indigenous folks during a January. 7 tweet.

Bolsonaro claimed that the new government can presently open “a black box” — a reference to an airplane’s flight recorder — of contracts and projects by state-owned economic development bank BNDES and other establishments. He mentioned that the recent project aiming to produce a digital currency for the native population of Brazil has already been canceled by the govt.

According to local daily newspaper Estadao, simply a few days before the previous president, Michel Temer left the workplace, the National Indian Foundation of Brazil had signed a crypto-related contract with public education establishment the Fluminense Federal University. The project needed the solicitation of R$44 million ($11.7 million) from the federal budget.

As per local crypto outlet Portal do Bitcoin, the contract, among alternative things, offered to make a cryptocurrency that would circulate among the indigenous population of the country. The budget, therefore, included articles on a feasibility study and development of the platform for the cryptocurrency.

However, on Jan. 3, the govt suspended the project, because the contract was issued improperly and lacked technical analysis, like a close description of the project, Brazilian newspaper O Globo reports.

The contract for the project was allegedly signed directly between FUNAI and UFF, rather than the legal bidding process. Moreover, the govt considered that the contract had been approved too quickly and entailed appreciable expenditure.

BNDES, a bank related to Brazil’s Ministry of Development, Industry and Trade, is liable for long-run projects aimed at developing the country.

As Top Market Group  Brazil reported in mid-December, the establishment conjointly thought of launching a stablecoin tied to the Brazilian real to trace public money transactions and alter greater transparency for the country, that has long been combating public corruption.

The so-dubbed BNDES token, based on Ethereumblockchain, was scheduled to launch in 2019. As of press time, it had been not instantly clear whether or not the stablecoin project has conjointly been suspended by the govt.

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