Welcome to our Tech Roundup, where we bring you the biggest stories in technology and innovation in Brazil and Latin America. This week: Agrotoken, the startup tokenizing commodities.
Agrotoken brings commodities to the blockchain
Despite recent record growth, Brazilian agribusiness faces a credit crunch. Investment bank Itaú BBA estimates that the sector needs between BRL 800 billion and BRL 1 trillion (USD 158 billion and 198 billion) in credit. The federal government’s Harvest Plan, a massive financing program, offered BRL 364 billion for the 2023-2024 harvest.
Driving the news. The digitization of commodities is one of the ways to close this gap.
Blockchain. Agrotoken, an Argentinian startup with 80 percent of its operations in Brazil (but also present in Uruguay, Paraguay, and the U.S.), converts the harvest of agricultural products into tokens registered on a blockchain system.
Why it matters. These tokens can be converted into real money to purchase agricultural inputs, equipment, and other goods. Producers can even set up an international credit card and use the tokens as a balance.
How it works. A proprietary algorithm...
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