The Brazilian National Social Development Bank has announced that it will launch a stable-coin based on the Ethereum (ETH) blockchain during January 2019.
Coindesk reports that come January 2019 the state-backed bank will launch the BNDES token, running on the Ethereum blockchain the token are backed on a 1:1 ratio with the Brazilian Real (BRL).
The blockchain technology is aimed at increasing investor trust in the bank as well, since it has a history of corruption scandals and alleged bribes.
The Ethereum network has been struggling to stay up to standard for a while now. With the rise of competing blockchains and the fall in the price of cryptocurrencies in the market, it’s been difficult for Ethereum to stay relevant.
ETH design studio ConsenSys is reportedly advising the bank, which is planning on issuing some BNDES to the National Film Agency to create awareness about the stablecoin.
The project was completed with help from Alex Van, a developer at Ethereum Foundation. It will give filmmakers that are associated with EI Cine the opportunity to collect and share financial records in real-time. Recipients will redeem the stablecoins via the bank and get the local currency in return.
Even as the market suffers greatly, all hope is not lost yet. There are those who still believe in Ethereum as the top platform for smart contracts and decentralized applications.