Bitcow: cryptocurrencies enter the Argentine agricultural sector

Blockchain is important for each of these efforts.Technology is designed to administer the shared registration online, safe and unalterable data.It is a shared and invariable accounting book that could revolutionize the world economy.

The application of this technology implements other innovations in agriculture, making the production chain more transparent and detectable.

The first step to provide cryptocurrencies in the Argentine agricultural sector was given by Bitcoin in 2020, when he introduced his own digital currency that represents animal leaders.This year the acrodocene proposed for the main agricultural products such as soybeans, corn and wheat arrived.

The main difference between these types of cryptocurrencies and other known and popular forms, such as Bitcoin and Ethereum, are that they are backed by real world assets.The latter works without real estate behind them, so their prices can be very volatile depending on the changing mood on the market.

"Cryptocurrencies derived from programs such as Bitcow or Agrotoken are stable coins, whose value is linked to another asset through a balance relationship," said Federico Orsi, president of Corporate Finance of Fineco Consulting.

According to Orsi, this type of initiative "stays here" because it is one of the potential applications of the "blockchain revolution" in agriculture.

«What is registered in the block chain will never change again.The panorama of many industries will change and will soon be accepted by all, ”said Lisandro Lapunzina, innovation director of Grobo America, a Rosario Business Association in Rosario.

Cereals and oleaginous

Acrotoken is the first tokenization site of agricultural products.It currently has two cryptocurrencies, soy and cora, backed by soybeans and corn respectively, and is scheduled to launch a third combined with wheat.

"Each file represents a ton of grain," said Patricio Greco, director of operations of the company.

When delivering their products to a collection center, manufacturers can choose to obtain soybeans (in the case of those who work with oilseed seeds) in a virtual wallet, which will be used when making transactions with any business that uses the system.Examples include Rizobacter fertilizer manufacturer and Puma Energy fuel supplier.

At present, scenic participation is restricted to local agricultural actors: producers, warehouses and suppliers."To date, transactions have been made for the purchase of vehicles, energy invoices, seeds and practically all services related to this sector," said Greco.Greater growth potential: the Rosario Stock Exchange estimates that the country could produce a total of 140 million tons of grains in the 2021-2022 growth season.

"In the rural areas ofArgentina, the concept of grain displacement is very common," represents Lisandro Lapunro de Grubo USA.«It's hard to see from the outside, but manufacturers often think of their inputs or purchases based on a certain amount of grain -loaded trucks.At the end of the day, the currency is the grain.Technology allows it to be complete.

The value of the cryptocurrency is related to the codes issued by the Matba Rofex group, which is responsible for calculating and issuing financial and agricultural indices.They follow the price of grains in real time in the Rosario Stock Exchange, the main trade market of raw materials inArgentina.

Agrotoken hopes to expand its reach in the short term.The plans include not only expanding beyond the borders, the first places directed to Brazil and the United States, but depending on the type of tokenized assets: "We are already in conversations with several strategic actors in the mineral and energy sector," said Greco.

Virtual cows

Bitcow, promises its website, allows anyone to "become a cattle producer without leaving home".Guillermo Villagra, one of the founders of the cryptocurrency, explained: Our mission is to democratize the investment.«There are many who want to participate in the agricultural industry, but because it is a unique business for everyone, they leave.

To date, the initiative has already identified 2.000 cows, a small part ofArgentina's total flock, which is estimated at 52 million heads.

Each animal represents a bitcow because cryptocurrency has a fun name.The company acts as an intermediary, guaranteeing the relationship between the investor and the real owner of the property.Therefore, this requires contracts with agricultural producers, which are implemented through intelligent contracts established under blockchain technology.

For now, the service is only available inArgentina, but its business plan describes the objective of arriving soon to other leading livestock countries, including Brazil, Uruguay, Australia and New Zealand."By when we are operational, we have already reached the 10,000 people who went through our site," added Villagra.

The price of cryptocurrency is based on an index that takes into account the same variables that apply to the traditional market, ranging from the price of livestock to the cost of maintenance.At the time of writing this article, a bitcow is worth 180.000 Argentine pesos, approximately 1.770 US dollars.

Whats Next

In addition to these two initiatives, reports on other cryptocurrencies in recent months have been associated with a lower impact on the media, vinification and sugar production.

For the Bitex CBO, Juan Pablo Aguato, who specializes in providing financial services that operate under Blockchain technology, the next cryptocurrency event in the agricultural sector is only the tip of the iceberg."With blockchain, you can certify the quality of food, at extreme levels," he said.

This new technology is a large and decentralized database that creates great confidence among all parties, since it is immutable.

Food companies are beginning to continue blockchain in their production processes and calculate their origin.Its use is increasing due to the new requirements established by countries that face the threat of deforestation.

According to the United Nations Agriculture and Food Organization, between 1990 and 2020, the world lost 420 million hectares of forests due to agricultural expansion.As a result of this dangerous number, the European Commission recently proposed a regulation that requires that certain products be free of deforestation.

Blockchain is a vehicle that allows to show the invention of production, said Diego Heinrich, founder of Cornice Validata, a technological platform for Meat chains that already use more than 200 farmers.Argentina.By 2022, the initiative is scheduled to land in Uruguay, Mexico, Bolivia and Paraguay.

Although the world has not yet completely embraced the Bitcoin phenomenon, it continues to create obstacles that predict the fourth industrial revolution, and all this is the result of the impact of the blockchain network.The agricultural sector, one of the most important sectors of the Argentine economy, also begins to feel the effects.

Source: Fruticola portal