Brazilian State-Owned Bank Funds Documentary via Its Own Ethereum-Based Token

A Brazilian state-owned bank is reportedly funding a documentary film through its own ether-based stablecoin, Cointelegraph Brazil reports on June 3.

Brazil’s National Bank for Economic and Social Development (BNDES) will finance the production of a documentary in collaboration with local cinema producer Elo Company, whose movie “The Boy and the World” by Alê Abreu was nominated for an Oscar in 2016.

According to the report, the funding for the project will be carried out through the national bank’s own cryptocurrency, BNDES token, a Brazilian real (BRL)-backed stablecoin that has been under development since 2018. BNDES’ stablecoin has reportedly had the first proof-of-concept conducted with the administration of the southeastern state of Brazil, Espírito Santo.

BNDES tokens, based on major token standard ERC-20, will be backed directly by the federal bank, which intends to utilize the token in order to bring more transparency in the management of funds within the financial institution, the report notes.

Brazilian regulators, including the country’s central bank, are reportedly aware of the BNDES stablecoin project and have been discussing the associated legal matters.

Earlier in January, new Brazilian president Jair Bolsonar criticized another local crypto-related initiative offering to build a cryptocurrency for indigenous people. At the time, the BNDES token was still expected to launch in 2019, as the president did not comment specifically on the project.

Recently, BNDES has reportedly selected five blockchain-focused startups in order to conduct its six-month acceleration program, BNDES Garage.

On May 31, the President of the Chamber of Deputies of Brazil ordered a commission to be set up in order to discuss crypto-related regulation in the country.