About one-third of the world’s coffee is grown in Brazil, making it the largest coffee producer in the world and the coffee farmers of the country are all set to use a new cryptocurrency that would be backed by coffee supplies.
Minasul, Brazilian’s prominent arabica-coffee cooperative, announced the launch of a new blockchain based digital coin that would be pegged to coffee supplies, allowing farmers to carry out their daily expenses through the new “coffeecoin”. The coins can be exchanged for goods in a digital marketplace backed by Minasul’s store of crop nutrients, machinery and other products.
In an interview with Global Coffee Forum in Campinas, Sao Paulo state, Minasul’s president, Jose Marcos Magalhaes, revealed that Minasul intends to launch the currency this month, so that coffee farmers can purchase farm products like fertilizers or farm machinery. Farmers can also use the digital coin to buy non-farm products like food and cars.
Magalhaes noted that the issuance of the new digital coin will depend on the current and future coffee production. He said,
“As much as 30% of the current harvest is eligible for exchange, 20% of the next crop, and 10% for the season after that. Allowing this type of digital financing will reduce costs for the cooperative and growers because it won’t require registration though a notary’s office.”