Funds for blockchain development are only enough to finance research until 2021.
The Fund for the Technological Development of Telecommunications in Brazil (FUNTELL) has decided to start with the initiative of adopting blockchain solutions through tools based on the Internet of Things (IoT). The entity gave this announcement through a publication by the Official Journal of the Union, a few days ago.
According to the announcement, FUNTELL made a significant investment to the Research and Development Center in Telecommunications (CPqD). Until now, the disbursement of the funds corresponds to 49.6 million Brazilian Reals, (approximately, about USD 9.27 million). The entity will use these funds for the development of IoT for communication purposes, as well as the implementation of blockchain solutions to improve processes.
Through resolution number 139, the fund’s management accepted the disbursement of resources to the CPqD. According to the plans that the Official Journal of the Union announced, the entity will divide the money between different projects that will focus on blockchain technology, 5G Solution, Integrated Circuits, and the Internet of Things (IoT).
Medium-Term Development Plan
The CPqD will maintain a set time frame of only two years to develop and promote blockchain technology. This is what spokespersons of the center recently reported since these resources are planned to last until 2021.
Regarding the division of resources, FUNTELL informed that of the 49.6 million Reais allocated for the entire project, the blockchain development will only have BRL 2,773,000 available, which corresponds to about USD 518,000 for the first two years. Thus, the center will use BRL 1,500,000 (USD 280,000) during this year. For 2021, the entity will only have BRL 1,273,714 (USD 238,000, approximately).
However, the Official Journal of the Union clarified that the data on the allocation of these resources may be subject to change following the laws in force. “The release of the values provided in this article is conditional on the approval of the laws of the annual budget of the corresponding years, including supplementary credits, as well as the availability and financial limits.”
Although the process needs the third approval of the FUNTELL administrative board for the advance of the development of the 5G network in Brazil, everything seems to indicate that the blockchain project does not need another approval. According to what some officials explain, everything is detailed under resolution number 139, that the Official Journal of the Union published.
Brazil has been one of the countries in Latin America that have shown more interest in the adoption of the crypto industry, both with the development of blockchain technology and the use of cryptocurrencies.
A clear example of government support for these technologies was evident a few weeks ago when local media reported that the Brazilian Ministry of Science offered help to implement blockchain webinars in other Brazilian government institutions. In this way, the country will continue adopting blockchain technology and accepting cryptocurrencies as a new form of payment in different companies and institutions.
By María Rodríguez