This Brazilian Bank Is Using Ethereum to Issue a Stablecoin

A state-owned bank in Brazil is about to issue a crypto token designed to maintain parity with the national currency.

Revealed exclusively to CoinDesk, the Brazilian National Social Development Bank will launch a pilot in January 2019 for the BNDES token, which runs on the ethereum blockchain and is backed 1-for-1 by Brazilian real. The bank has been experimenting with the stablecoin throughout 2018 and will now use it for tax-deductible contributions to cultural institutions.

ConsenSys, the ethereum design studio, will be among the companies consulting the bank during this process. Although the Brooklyn, N..Y.-based conglomerate of startups wouldn’t comment on this Brazilian project beyond confirming its involvement, it falls squarely in line with priorities listed in an internal statement issued by its founder Joe Lubin earlier this month, stating the company will renew its focus on being a blockchain advisory specializing in architecture and token design.

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