Social Currencies In Brazil: Blockchain’s Newest Frontier?

Key Points

1. Brazilian communities are experimenting with blockchain-based social currencies like Aratu, pegged 1:1 to the Brazilian real, to support local economies.

2. The Aratu project is a collaboration between Chainlink, Plexos Institute, and EDinheiro, aiming to modernize an existing 30-year-old community currency system.

3. Blockchain integration provides transparency, efficiency, and compliance with data protection laws, while transaction fees (2–3%) are reinvested locally.

4. Social currencies in Brazil are governed by local municipalities and designed to keep money within the community, unlike global payment processors.

5. Future goals include expanding financial services like credit pools and microloans, though legislative reforms may be needed for full implementation.