Chili-backed Crypto a Hot Commodity in Mexico

The habanero pepper, one of the hottest chilis in the world is a staple of Mexican cuisine. In the Yucatan Peninsula, you would be hard-pressed to find a dish that hasn’t been prepared using the small-sized habanero peppers. It is one of the cultural symbols of the Mexican people.

As with almost everything else these days, cryptocurrency appears to have made a foray into the world of spicy chilis. An agro-company in Mexico has decided to issue a cryptocurrency that is backed by its agricultural produce showing once again that just about anything can become an asset on a blockchain.

Agrocoin: The Chili Backed Cryptocurrency

Agrocoin is the name of a new cryptocurrency that is being issued by Amar Hidroponia, a commercial agro-company based in the Quintana Roo state in Mexico. Amar Hidroponia specializes in the cultivation of habanero chilis. In fact, the firm doesn’t grow any other type of farm produce. Agrocoin is being backed by the company’s habanero chili cultivation.

1 Agrocoin = 1 square meter of habanero chili cultivation

The current value of 1 Agrocoin is about 500 peso which is the equivalent of about $27. Amar Hidroponia plans to pay its investors a yearly dividend in the region of 30 percent of the cost but this will depend greatly on its production output and of course, the demand for habanero chilis.

The move by Amar Hidroponia to issue an agro-based cryptocurrency was based on the company’s desire to see more people invest in agriculture. According to Rodrigo Domenzain, the president of Amar Hidroponia, a lot of people wanted to invest in the company but didn’t have the financial means to do so using mainstream investment methods. He went on further to state that Agrocoin provided a means to have a low-cost investment vehicle that was backed by agricultural produce.

Those wishing to invest in Agrocoin can purchase some from the website of the company. There is a stipulated lockup period of 1 year before the cryptocurrency can be traded on crypto exchange platforms. So far, out of the 1 million Agrocoin tokens that the company is planning to issue, 50,000 has been sold.

Other Agro-based Blockchains Around the World

There are a number of blockchain implementations in the agricultural industry as entrepreneurs are seeking ways to enhance the efficiency of their processes. One key area of the agricultural business process that has seen significant blockchain activity is in the supply chain. Ripe, a startup company established by Phil Harris and Raja Ramachandran uses blockchain technology to track tomatoes through the supply chain network. The company struck a partnership deal with Sweetgreen Inc. to demonstrate how blockchain can help improve the agricultural supply chain matrix.

AgriLedger is another groundbreaking project that is implementing blockchain technology in the agricultural sector, with a focus on smallscale farmers. One of its core objectives is to utilize blockchain technology is significantly reducing the percentage of wastage of agricultural produce that occurs within the supply chain network.

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