Compass Coffee, a well-known American company, has made its first purchase of Salvadoran coffee using Bitcoin.
Several media have reported the historic international transaction, which represents a milestone in the Using cryptocurrencies for business transactions, which also highlights the quality of coffee produced in El Salvador. According to the media, the transaction was carried out with a batch of 15 quintals of high-quality coffee, acquired directly from the Biokrop Project, a local Salvadoran producer.
For this transaction, which was carried out with the collaboration of the Ministry of Foreign Affairs of El Salvador, it underlines the importance of using Bitcoin for this type of purchases, eliminating the need for middlemen and allowing producers to receive a significantly higher price than that offered in the traditional market.
Jorge Cruz, representative of the Biokrop Project, commented that the price agreed for the lot of coffee was two to three times higher than the US market price, which highlights the advantages of this new commercial approach.
The first coffee deal paid in Bitcoin
The recent agreement between Compass Coffee and Salvadoran coffee producers represents a significant change in the way business transactions are conducted in the agricultural sector. On the one hand, it highlights the speed and efficiency of Bitcoin transactions, which were completed in less than ten minutes. On the other hand, producers' accessibility to better prices on the international market. These are all aspects that could revolutionize international trade in agricultural products.
Furthermore, with the completion of this international operation in Bitcoin, El Salvador continues to position itself as a pioneer country in the use of cryptocurrencies in key sectors, including commodities trading.
Thanks to this agreement, the Salvadoran coffee community now has alternatives to overcome the challenges it has faced for years in terms of prices and access to international markets. By eliminating intermediaries, producers can receive a fairer and more sustainable income, which could contribute to local economic development and improved quality of life in coffee-growing communities.
Likewise, the use of Bitcoin in coffee trading could also help promote the quality of Salvadoran coffee in the international market and attract the attention of other buyers and companies interested in exploring the potential of cryptocurrencies for commercial transactions.
Economic diplomacy as the driving force behind the agreement
According to local reports, the role of economic diplomacy has been crucial in the realization of this Bitcoin coffee deal. Both the Salvadoran embassy in the United States and the Salvadoran Ministry of Foreign Affairs facilitated the necessary connections between Compass Coffee and Salvadoran producers for this first deal to be successfully completed.
Chas Newman, Compass Coffee Operations Manager, highlighted the collaboration with government organizations as a significant milestone, stating that "The Embassy played a very important role in ensuring that we got the product we needed". This type of intervention not only helps to create trade ties, but also fosters an enabling environment for economic development, he noted.
El Salvador's ambassador to the United States, Milena Mayorga, also highlighted the operation, noting that the use of Bitcoin in the purchase agreement allowed producers to receive competitive payments without the commissions of intermediaries.
Bitcoin Blend, a Bitcoin-flavored coffee
Compass Coffee has been immersed in the world of Bitcoin and cryptocurrencies for some time now. In fact, in 2022, the American company launched a special edition called Bitcoin Blend, inspired by the culture of El Salvador, and the country's pioneering role in the history of Bitcoin.
Compass Coffee’s purchase of coffee from El Salvador using Bitcoin thus marks a new chapter in the relationship between cryptocurrencies and international trade, benefiting Salvadoran producers with fairer prices and accessibility to international markets, and underscoring the role of economic diplomacy in creating trade connections.
As more companies begin to adopt this model, El Salvador could become a benchmark in the use of cryptocurrencies for the trade of agricultural products, opening up new opportunities for its economy and its coffee community.
