Hard-Hit Argentinian Farmers May Get Boost From Trading Platform for Tokenized Produce

Farm assets like soybeans will be tokenized on a platform from CoreLedger for trading against other assets like cattle or fiat currency.

Jan 28, 2021 at 1:06 p.m. UTC
Updated Sep 14, 2021 at 11:02 a.m. UTC

Farmers struggling amid Argentina's hyperinflation and the economic effects of the coronavirus pandemic may soon find relief through the tokenization of agricultural assets using blockchain technology.

According to a press release on Thursday, blockchain infrastructure provider CoreLedger and soon-to-launch peer-to-peer marketplace Abakus are aiming to create a digital barter economy within the country.

CoreLedger’s technology is expected to allow farmers to redeem and trade their tokenized farming assets with any other tokenized asset on the Abakus platform.

For example, soybeans would work like an asset-backed currency to be traded for cattle, corn or the Argentine peso, according to the press release. Assets on Abakus will also be available to both national and international investors.

"In an inflation-stricken country, access to physically backed assets can be the difference between surviving and thriving for these farmers," said CoreLedger CEO Johannes Schweifer.

Schweifer also said 40% of the world’s soybean oil and soybean meal production comes from Argentina and that the initiative is of "great national interest" to small farmers seeking to liquify their assets.

Argentina has struggled with hyperinflation since as early as the 1980s, compounded by foreign debt, excessive government spending and a recession that continues to plague the Latin American nation.

“Farmers in Argentina struggle to make a living due to the stronghold monopolies of national corporations who dictate the conditions for agricultural trade and take a major cut," said Abakus CEO Martin Furst. "Agricultural-backed tokens solve volatility and liquidity issues inherent in cash and stock-based saving plans."

A previous CoreLedger initiative in Bolivia enabled farmers to sell tokenized cattle to investors abroad, opening an avenue to circumvent loss of revenue to middlemen.

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
Coinbase Expands Features, Allowing Some App Users to Access Ethereum-Based Dapps

The move will let Coinbase users purchase NFTs, trade on decentralized exchanges and borrow and lend on various DeFi platforms.

The move will let Coinbase users purchase NFTs, trade on decentralized exchanges and borrow and lend on various DeFi platforms.

2
S&P Global Ratings Forms DeFi Group to Build Out Crypto Framework

The credit rating giant named Charles "Chuck" Mounts as chief DeFi officer to lead the unit.

The credit rating giant named Charles "Chuck" Mounts as chief DeFi officer to lead the unit.

3
What Happened to the Luna Foundation Guard’s Bitcoin Billions?

The community is getting louder about wanting answers to this lingering question.

The community is getting louder about wanting answers to this lingering question.

4
Stronghold Digital Beats Q1 Revenue Estimates, but Misses on Earnings

Shares of the bitcoin miner that uses waste coal for energy fell slightly in after-hours trading.

Shares of the bitcoin miner that uses waste coal for energy fell slightly in after-hours trading.