A coffee-backed cryptocurrency could soon be a reality in Brazil. In an initiative to support hardworking farmers throughout Brazil’s countryside, coffee farming cooperative Minasul has set out to develop a digital asset backed by coffee beans.
This is surely welcomed news for farmers throughout Brazil as they will be able to use the coin to buy machinery, fertilizer, and also non-farm product such as cars.
According to the cooperative president Jose Marcos Magalhaes, trading the “coffeeCoin” for goods will take place on a digital marketplace supported by Minasul.
Coffee farming cooperative Minasul is Located in the state of Minas Gerais. It is one of the nation’s biggest arabica-coffee cooperatives. Brazil is the world’s leader in terms of coffee production and exportation.
The “CoffeeCoin” is set to be released as early as this month as per a representative of the cooperative.
Furthermore, farmers will have the possibility to get hold of the token in exchange for their current or future coffee production. A report states that they could trade up to 30% of the current harvest, 20% of the next crop, and 10% of the following season.
Mr. Magalhaes further affirmed that this type of digital financing will limit operating costs not only for the cooperative but for the hardworking farmers as well, as it will eliminate registration through a notary’s office.
Unsurprisingly, the cooperative is looking to take on a massive digitalization project, by allowing farmers to sell their coffee production directly from their smartphones in the future.
A coffee-backed token could either have positive or a negative impact on the Brazillian agricultural sector. We don’t know for sure how it will all pan out. However, the idea of decentralized agriculture sounds great