Virtual currency entering the Brazilian coffee industry, what changes can coffee coin bring?
An Arabica coffee bean cooperative, Minasul, plans to launch a blockchain-based cryptocurrency later this month. The currency will serve not only for transactions within the coffee cultivation ecosystem but also for purchasing other daily necessities.
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In the near future, coffee farmers in rural Brazil will start using a cryptocurrency called "coffee coin" to meet their daily life needs. For example, coffee farmers can use the so-called "coffee coin" to purchase fertilizers, machinery, or other non-agricultural products, including cars and food.
Minasul, located in Minas Gerais, is one of the largest Arabica coffee cooperatives in the Americas, and Brazil is the world's largest coffee producer and exporter.
During an interview at the Global Coffee Forum, Minasul President Jose Marcos Magalhaes said:
The exchange of goods will be conducted online with virtual currency, backed by Minasul's crop nutrients, machinery supplies, and other products.
Magalhaes stated that coffee farmers can borrow using their crops, with 30% of the current season's crops as collateral, 20% for the next season, and 10% for the season after. This digital currency financing, which eliminates the need for notary office registration, will reduce both the cooperative's and the coffee farmers' planting costs.
As cooperatives continue to implement digital currency projects, farmers will be able to directly trade coffee beans on their phones in the future, not only significantly increasing profits and quality of life for coffee farmers but also creating a virtuous cycle for the industry.
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