With Argentineans facing rising inflation to near 40%, solutions appear to contain the impact on national farmers. A business blockchain platform is partnering with a peer-to-peer (P2P) marketplace to launch a program to tokenize Argentina’s agriculture.
More Than 40% of the World’s Soybean Oil and Soy-Meal Production Comes From Argentina
According to an announcement shared with news.Bitcoin.com, Coreledger will work with Abakus to set up a “digital barter economy” in Argentina.
The project consists of enabling farmers to tokenize their agricultural assets to seek a hedge against rising inflation. It can be possible by accessing liquidity via certified titles through national and international investors, said Coreledger.
Argentinean farmers could redeem and trade their tokenized titles with any other asset through the Akabus P2P platform. Coreledger puts soybeans as an example, as it can work like an asset-backed currency, tradeable for other commodities or even the fiat peso.
Johannes Schweifer, CEO of CoreLedger, commented on the farmers’ struggling with a plummeting fiat peso amidst pandemic uncertainties:
More than 40% of the world’s soybean oil and soy-meal production comes from Argentina, meaning it is of great national interest that smallholder farmers can liquify these assets. In an inflation-stricken country, access to physically-backed assets can be the difference between surviving and thriving for these farmers.
Also, Martin Furst, CEO of Abakus, believes the tokenization of agricultural assets brings “greater agency to farmers who can now sell the physical-backed assets according to their own needs.” Coreledger clarified that tokens become “true stable coins, backed by real assets, not unstable fiat currencies.”
Bitcoin Keeps Going Through the Roof as Economic Troubles Worsens in Argentina
The plan is to oversee how the project works within the Argentinean economic conditions’ environment. After assessing the results, Coreledger expects to expand the tokenized agriculture concept into other developing countries.
With a currency that faces economic troubles, inflationary turmoil, oversized emissions, and hopeless forecasts from experts, bitcoin (BTC) has been having enough room to surge in Argentina. Over the last year, BTC prices crossed the 1,594,000 threshold against the Argentinean peso.
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