An Argentine company created the first cryptocurrency backed by soybeans

An Argentine company created the first cryptocurrency backed by soybeans

It is about Agrotoken, creator of the “cryptosoja” SOYA. Its objective is to “tokenize” 5% of the world’s oilseed production. Unlike bitcoin, this virtual currency is a “stablecoin”, what is the difference?

The cryptocurrency market grew exponentially in Argentina . It is estimated that more than a million people bought virtual currencies in the last few months in our country. In this context, a venture seeks to take advantage of the potential of soybeans as a backing asset for “stable currencies”. This is Agrotoken , the first company to issue “cryptosojas” .

“We are a group of people passionate about our land. We believe that the latest technological changes have opened up the possibility of creating a new reliable, transparent and decentralized ecosystem to make the dream of many producers come true: to use their production as if it were currency ”, they explained from the first platform for tokenization of agricultural commodities.

An important fact that Agrotoken highlighted is that in Argentina, Uruguay, Brazil and Paraguay, almost 60% of world soybean production is concentrated . For this reason, they assured that SOYA “opens a new vertical in the world of crypto assets and finance in general.”

Their objective is clear, they seek to “tokenize 5% of world soybean production . ” In addition, they highlighted that the process  “does not alter” the circuit of the traditional grain buying and selling business “but rather works as a digital solution for farmers in the field.”

How does cryptosoja work?

“In each Cryptosoja SOYA Token,  there is a ton of real soy guarded in a stockpile that supports it . This ton, in turn, is validated through the PoGR (” Grain Reserve Test “ , for its acronym in English ), which is transparent, secure, decentralized and auditable at all times through the Ethereum blockchain (the system that manages it) “, they detailed from the company.

According to its creators, these conditions make SOYA a stablecoin , a crypto asset that has as its reference value the price of soy in the local market. In this case, a token of the Agrotoken crypto is equivalent in value to the price of a ton of soybeans .

What is a stablecoin?

Also known as  stablecoins  , stablecoins are a type of cryptoactive that allows to minimize the volatility of their price by using fiat currencies, commodities or even other cryptocurrencies as a backup. For example, in the case of the DAI stablecoin , its value is backed by the dollar and has a 1-to-1 equivalence . 

Other stable coins from Argentina

The undertaking supported by oilseed grains is not the only one of its kind that took place in our country . In recent months, the Tucuman financier Bitnoa did something similar when she launched her own cryptocurrency , Sucoin . The main characteristic is that its value is backed by one of the best known raw materials in the northern province: sugar .

 

Samuel Edwards
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