A new cryptocurrency, Coffee Coin launched in July has created a spur in the market. It is attracting growers, producers & traders of coffee from the world’s largest traders of coffee, Brazil. This is the world’s first cryptocurrency backed by physical stocks of green coffee. The valuation of each coffee coin is linked to the market price of green coffee which also has additional investment demand. The coffee coin was launched by Brazil’s second-largest Arabica coffee cooperatives Minasul. Farmers who are a part of the cooperative can use this cryptocurrency against coffee output. 30% of the harvest can be exchanged for coffee coins which can further be used to buy farm inputs or other goods. Investors trade coffee coins for physical money or green coffee which is in lots of 1,500 kg. This cryptocurrency is relatively less volatile as it is linked to the market price of coffee. The regulations in India regarding cryptocurrencies are uncertain. Hence, the government is scheduled to introduce a crypto bill in parliament.
Source: Money control