Bloomberg reports confirm the coffee industry in Brazil is embracing the new technologies as Minasul, one of the leading cooperatives for coffee farmers adopts blockchain technology and announces the launch of a digital coin in the next month.
Blockchain technology and cryptocurrencies are set to be integrated to your morning’s favorite drink – coffee. Not at your favorite coffee shop (though it may be accepting crypto) but straight to farmers in Brazil, the largest producer and exporter of coffee in the world. One of the largest cooperatives dealing in Arabica bean coffee in country, Minasul, looks to launch a digital asset on blockchain in the coming month. The cryptocurrency will enable farmers and users of the coin to buy farm products such as fertilizers and machinery and will be backed by the coffee produced.
Jose Marcos Magalhaes, Minasul’s president, said in an interview during the Global Coffee Forum in Campinas, Sao Paulo state.
The Minasul Digital Coin Set To Launch In August
The coffee cooperative president, Jose Marcos Magalhaes, spoke during the Global Coffee Forum held in Campinas, Sao Paulo state earlier in the week confirming the news. The digital coin is expected to be fully backed by the coffee produce and will be traded on a decentralized marketplace for goods related to coffee production.
Here is how the exchange works. Coffee farmers will be able to exchange a fraction of their current crop produce and expected produce to gain the digital asset. Marcos said the farmers will be able to exchange 30% of their current crop, 20% of the next expected produce and 10% of the next after for the currency.
Being built on blockchain technology allows Minasul platform to provide a cheap and efficient method to raise capital for coffee famers in Brazil. The decentralized platform reduces the costs of registration for users replacing notaries.
There is an increase in coffee companies looking towards blockchain to improve their systems, record and validate coffee beans and reduce overall transaction costs. Starbucks has been one of the most vocal companies on its need to implement blockchain to give it an advantage over its competitors.
Brazil is slowly accepting blockchain technology in the country with the financial authorities setting up a regulatory sandbox to look into the field of virtual currencies and best way to integrate these new technologies in the various sectors of its economy.