The platform developed on RSK for the Internet of Value, IOVlabs, and the crowdlending platform, EthicHub, join forces to finance coffee-growing communities in Mexico, and boost the real and productive economy through blockchain.
There are thousands of producer communities around the world that do not have access to the traditional financial system, and therefore cannot benefit from financing plans or programs that boost their economic activities. To correct this, IOVlabs, the platform developed on Bitcoin RSK to drive the Internet of Value, and EthicHub, the crowdlending platform for direct loans between individuals, signed an alliance whose purpose is to finance several hundred farmers and coffee producers who do not have access to financial and banking products in Mexico. Through this alliance, unbanked coffee producers will be able to enjoy new and better financing tools, which will help them grow and develop their economic activities.
The financing program promoted by IOVlabs and EthicHub will facilitate direct access to economic resources, and will allow producers to have much lower interest rates than traditional products. In this way, the organizations seek to promote the true productive economy in a transparent and secure way through technology. blockchain.
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Cryptocurrencies, Blockchain and their disruptive potential in the financial system
For many farming communities, access to traditional banking is very difficult, and often even impossible. This has become the main barrier to economic development and growth for these communities, who cannot access financial products that boost and promote their activities.
Thus, the initiative presented by IOVlabs and EthicHub allows these producers to have a new opportunity to grow their businesses, in addition to enjoying a unique benefit offered by Bitcoin and blockchain technology: being their own bank. As explained by Jori Armbuster, CEO of EthicHub, agricultural communities of coffee producers, and the investment world in general, will see a revolutionary and transformative change with the implementation of blockchain technology. The expert highlighted that the potential of new technologies favors the financial inclusion of unbanked people, and that this opportunity can be transferred to agricultural communities for their own benefit.
A pool with more than $240.000 USD
The initiative promoted by the two crypto platforms already has a pool of 200.000 euros, equivalent to about $243.000 USD. This money will be used to finance small coffee producers in Mexico for a period of 6 months, according to what the platforms have informed various media outlets.
IOVlabs will be responsible for promoting technical knowledge to all beneficiaries of the program, while EthicHub will be responsible for managing resources among agricultural producers through its peer-to-peer (P2P) platform.
For his part, the CEO of IOVlabs and Co-founder of RSK, Diego Gutierrez Zaldivar, stressed that the mission of the organization he represents is to “sowing the seeds for building a new global financial system”, a much fairer and more inclusive one, based on the potential of Bitcoin, blockchain and new technologies. Gutierrez Zaldivar also highlighted that using innovation to boost the cryptoeconomy and putting economic resources and new financial tools in the hands of those who really need them was one of the goals that they were most proud of at IOVlabs.
Building a new financial system
Both Armbuster and Gutierrez Zaldivar highlighted that the potential and flexibility of blockchain is what makes the consolidation of this type of financing projects possible. The revolution that this technology represents is opening the doors to the construction of a new financial system based on cryptocurrencies, where each individual can act as their own bank, having absolute control of their own finances.
Financing initiatives for agricultural producers through blockchain-based solutions, and even in DeFi, are gaining greater momentum. In November 2020, the oracle blockchain chainlink together with the insurance company on blockchain Etherisc and the insurer ACRE Africa, signed an alliance to develop a microinsurance platform, in order to provide protection to 250 thousand agricultural producers in East Africa from climate change, which can negatively affect their crops.
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