IDB will support small farmers in Mexico with blockchain

Blockchain technology applied to the banking sector gives broad benefits to those excluded from the system, such as small farmers. In the specific case of farmer groups in Chiapas, the IDB, through BID Lab,, seeks inclusion through financing to the EthicHub platform.

The agency, through its innovation laboratory, “approved a financing of US $ 600,000” to encourage the development of the aforementioned platform. The purpose is that land workers can obtain international financing as well as attract direct buyers, without intermediaries who appropriate juicy profits.

The alliance seeks to provide them with tools to improve crops, in addition to opening the doors to loans with low interest rates. The collective financing platform will be based on the blockchain.

Through the IDB Lab-EthicHub alliance 45,000 small farmers will obtain resources for the management of farms between 2 and 10 hectares to increase the cultivation of coffee, cocoa and other items.

IDB spokespersons indicates: “It is estimated that 23% of 135 million Mexicans live in rural areas. In the Chiapas region, a state in southern Mexico, 77% of the rural population lives in poverty and work on agriculture and livestock.”

Given that they are excluded from the banking system and experience strong market access limitations for their products, their productivity and ability to generate income, save and accumulate profits are very low.

Regarding EthiHub, it must be said that “it has successfully implemented pilot financing programs of working capital, and the connection of agricultural producers with direct buyers in three rural communities of Chiapas, managing to expand this market”.

M.Pino

Source: DiarioBitcoin