Brazil Shuts Down Project of an Official Indigenous Cryptocurrency

The administration of Brazil’s new president, Jair Bolsonaro, has decided to cut off the initiative of the previous government to promote and create a cryptocurrency to facilitate transactions between indigenous communities.

Government of Brazil Gives its Reasons to Shut Down the Project

According to information published by Brazilian local newspapers, the head of Brazil’s Ministry of Women, Family and Human Rights, Damares Alves, a member of the country’s new executive cabinet, suspended a contract for the development of a project that includes the creation of a cryptocurrency for indigenous communities which was gaining popularity among locals.

Jair Bolsonaro: New President of Brazil / courtesy: Aljazeera

The project included an agreement through which the National Indian Foundation (FUNAI) of Brazil granted a budget of 44 million reais ($11.67 million) to the Universidad Federal Fluiminense (UFF) for its implementation. The plan contemplated, among other actions, the “study and diagnosis of socioeconomic viability of the creation of an indigenous cryptocurrency; development of the cryptocurrency platform; and implementation of that platform,” as reported by local media.

The cryptocurrency, nicknamed by the locals as the “Bitcoin of the Indian,” would function as a social cryptocurrency intended to circulate among the Brazilian indigenous population.
The government of Jair Bolsonaro considers that due to its amount, the adjudication should have been given through bidding; however it was directly granted three days before Mr. Bolsonaro assumed the presidency.

FUNAI Responds

Given these allegations, Wallace Bastos, clarified that it was not a direct adjudication as the representatives of the new administration say, but a Decentralized Execution Term (TED), perfectly valid according to the legal stipulations of the country.

Wallace Bastos / courtesy:

For their part, the UFF authorities have not expressed a public position on the issue; however, it is normal that in situations of this type an official statement is issued on behalf of the university instead of resorting to isolated declarations by officials of that institution.

Until now, Jair Bolsonaro has not issued an official position regarding the use of crypto, but it is expected that the new president will initiate a plan to control and tax the possession and trading of cryptocurrencies in the near future.

Right now Brazil is one of the south american countries with most active Bitcoin (BTC) trading by volume according to

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