Cryptocurrency reaches coffee farmers in the Brazilian countryside
Coffee farmers in rural Brazil could soon be using a cryptocurrency for their daily needs.
Minasul, a major Arab coffee cooperative, plans to launch a blockchain-based cryptocurrency this month that will be supported by coffee supplies. Farmers can use the “Coffeecoin” to buy fertilizers, machinery and other non-agricultural products, including cars and food, said José Marcos Magalhaes, Minasul’s president, in an interview during the World Coffee Forum in Campinas, Sao Paulo state.
The exchange of currencies for goods will be carried out in a digital market, backed by the nutrient store for crops, machinery and other Minasul products.
Farmers will be able to acquire the cryptocurrency in the face of current and future coffee production, Magalhaes said. Up to 30% of the current crop will be accepted for the exchange, 20% of the next harvest and 10% for the next season. Allowing this type of digital financing will reduce costs for the cooperative and producers, since it will not require registration through a notary, he explained.
Cryptocurrency occurs as the cooperative undertakes a larger digitization project, which includes the possibility of farmers selling beans in mobile telephony transactions.
Minasul, based in the state of Minas Gerais, is one of the largest Arab coffee cooperatives in the country. Brazil, on the other hand, is the largest producer and exporter of coffee in the world.
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