As the inflation rate faced by Argentines rises to nearly 40%, the solution seems to suppress the impact on their farmers. Commercial blockchain platforms are cooperating with peer-to-peer (P2P) markets to launch a plan to tokenize Argentine agriculture.
More than 40% of the world’s soybean oil and soybean meal production comes from Argentina
According to an announcement shared with news.Bitcoin.com, Coreledger will cooperate with Abakus to establish a “digital barter economy” in Argentina.
The project includes enabling farmers to tokenize their agricultural assets in order to find a way to hedge against rising inflation. Coreledger said it is possible to obtain liquidity through accredited titles for domestic and international investors.
Argentine farmers can redeem their tokenized ownership and any other assets through the Akabus P2P platform. Coreledger uses soybeans as an example because it can work like an asset-backed currency and can be used to trade other commodities or even pesos.
CoreLedger CEO Johannes Schweifer commented on farmers’ struggles with a plummeting peso under the uncertainty of the pandemic:
More than 40% of the world’s soybean oil and soybean meal production comes from Argentina, which means that small farmers can liquefy these assets in a major national interest. In a country plagued by inflation, getting tangible asset support may be the difference between the survival and development of these farmers.
In addition, Abakus chief executive Martin Furst believes that the tokenization of agricultural assets “brings greater agency rights to farmers, who can now sell physical assets according to their needs.” Coreledger clarified that tokens become “true stable coins backed by real assets, not unstable fiat currencies.”
As Argentina’s economic problems worsen, Bitcoin continues to rise
The plan is to monitor how the project works in the Argentine economic environment. After evaluating the results, Coreledger hopes to extend the tokenized agriculture concept to other developing countries.
Faced with economic troubles, turbulent inflation, excessive emissions, and hopelessly predicted currencies by experts, Bitcoin (BTC) has enough room for growth in Argentina. Last year, the price of BTC against the Argentine Peso broke the 1,594,000 threshold.
What do you think of the idea of tokenization of agricultural assets in Argentina? Let us know in the comments section below.
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