A cryptocurrency that is backed by coffee is now available.

In the commodities and financial sectors, a new cryptocurrency is causing a stir. Since its introduction in early July, the Coffee Coin has had a good start.

It is luring coffee growers, producers, and dealers in Brazil, the world’s largest coffee producer.¬†
It is the first cryptocurrency in the world to be backed by actual green coffee stocks. Each coffee coin’s worth is determined by the market price of green coffee, as well as investment demand. Minasul, Brazil’s second-largest Arabica coffee cooperative, introduced it at the beginning of July 2021.

Coffee Coins may be exchanged on exchanges such as StonoEx, a project partner.
Farmers who are members of the cooperative can buy the cryptocurrency now and in the future against their coffee output. They can sell 30% of their current harvest in exchange for coffee coins. These coins may be used to purchase agricultural inputs as well as other items.
Coffee coins can also be purchased and exchanged for actual money or green coffee, which must be purchased in quantities of 1,500 kg.

Cup of black hot coffee on a map with Brazil made of coffee beans. Top view.

In fact, bitcoin enables one to acquire coffee stocks at the press of a button. This might have far-reaching implications for how the Brazilian coffee market and its members operate. Because Brazil is the world’s leading coffee producer, merchants all over the world are keeping a close eye on coffee coins.
Because it is tied to the market price of coffee, this cryptocurrency is predicted to be less volatile. Other cryptocurrencies, such as Bitcoin and Dogecoin, are impacted by speculation and, on occasion, celebrity comments. It’s also a secure bet because it’s backed by real assets and a big coffee union.

The value of coffee coins has increased by more than 35% in the first month after their debut. This is because Brazil’s coffee output has been hampered by poor weather. To some extent, the increase has also been aided by increased investment demand.

Please follow and like us:

Related Articles