The BNDES token, as a stable coin, will be pegged to the Brazilian Real (BRL). The pilot programme has been in the experimental stage throughout the current year. Starting January, the BNDES will go into its pilot stage. Brazilian National Social Development Bank’s token will be initially available for tax deductible activities such as cultural institutions. The bank hopes that through this, the institutes will use the tokens acquired for their operations, creating an easy spread of the stable coin.
The Brazilian National Social Development Bank will release the first batch of the stable coins to National Film Agency. Since the tokens will be used to promote tax deductible activities, the tokens will use electronic identification certificates that are issued by the National Registry of Taxpayers. The BNDES will be issued with smart contracts, referring to the payments made and will be bound within the industry issued, ensuring tax evasions are not possible.
Since the BNDES token is said to be a stable coin, it will maintain parity with the Brazilian Real. How the specific mechanism will allow to hold the parity is still not disclosed. Stable coins have always had issues with maintaining their prices. Sudden demands and supply changes always cause the price to fluctuate.
The most famous stable coin, USDT, tries to maintain its value by the issuers selling or buying the coin in the market. The system, although very simple, is difficult to work since electronic selling and buying changes faster than the issuers can cope up with.
Another issue stable coins have faced is that there are no banks that back them. It is assumed BNDES token will fare better since Brazilian National Social Development Bank will be issuing and backing them.