Coffee farming cooperative Minasul plans to issue a coffee-backed token, according to president Jose Marcos Magalhaes as reported by Bloomberg.
Farmers will reportedly be able to use the coin to buy fertilizer, machinery and other non-farm products — including cars and food — in a digital marketplace.
Per the report, farmers will also be able to acquire the token in exchange for current and future coffee beans production: 30% of the current harvest, 20% of the next crop, and 10% of the following season are eligible for exchange.
The financing structure is expected to reduce operating costs for both the cooperative and the farmers, since it won’t require registration through a notary’s office.
The project is part of a broader digitization effort by the Minasul cooperative, which is also looking to allow farmers to sell their harvest directly from their smartphones.
Minasul is one of Brazil’s largest arabica-coffee cooperatives, Brazil being the world’s single largest coffee exporter.
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Wow so cool!