Brazilian Presidents Halts Development of Brazil’s Indigenous Coin

After just settling in his office, the newly elected Brazilian President Jair M. Bolsonaro has halted the development of an indigenous virtual coin for his country. In his defense he is citing the right procedures weren’t followed in awarding the contract. Furthermore, he is criticizing the contracts under the BNDES black box which has pulled together several parastatals working together towards the same goal of assisting the country’s development through financing projects. The black box contains contracts connected to the Brazilian National Bank for Economic and Social Development, a federal public firm linked to the Brazilian Ministry of Development, Industry, and Trade.

Others against the Project

Apart from President Jair M. Bolsonaro pulling the plug on the above project, Damares Alves Brazilian Minister for Human Rights, Family and Women went a step notch and vetoed the development of the indigenous coin on January 2. Her actions led to the cancellation of the contract.

Factors that Led to the Cancellation of the Project

The main factor that led to the cancellation of the above contract is the lack of a traditional bidding process which is a must. Instead of carrying out a bidding process, the project was approved by the Fluminense Federal University (UFF) and the National Indian Foundation (Funai). With the approval of the latter firms, the development of Brazil’s coin costing $12 million was set in motion. In their defense, the president of Funai Wallace Bastos defended the awarding process citing several factors that led to the emission of a bidding process. He said the project was approved and signed off through a Decentralized Execution Term. When questioned about the time the contract was signed ,Funai President said the lack of a bill and the approval of the said bill towards the end of last year led to the project been approved on the end.

Besides the emission of bidding process, the time the contract was signed also raised a lot of questions. The firms concerned approved and signed the contract three days before the term of President Jair M. Bolsonaro predecessor. Moreover, reports show the contract was huge and included the development of a territorial database and functional mapping services. Brazil has a vibrant market for digital coins, and even though the coins development was stopped, it wouldn’t cause any problems for the sector. The sector will keep growing.