{"id":127568,"date":"2025-04-20T15:18:33","date_gmt":"2025-04-20T15:18:33","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=127568"},"modified":"2025-04-20T15:18:33","modified_gmt":"2025-04-20T15:18:33","slug":"farmers-are-switching-to-stablecoins","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=127568","title":{"rendered":"Farmers are switching to stablecoins"},"content":{"rendered":"

Source: Cointelegraph.com NewsOpinion by: Henry Duckworth, founder and CEO of AgriDex
\nWe all need and buy it. Food is a common, universal ground across the planet. It should come as no surprise then that the agricultural industry is enormous. In 2023, the European Union alone imported 154 million tonnes of agricultural products and exported 134 million tonnes more. The market is growing too, projected to expand by 3.45% annually from this year to reach $5.52 trillion by 2029.\u00a0
\nYet, farmers and agricultural traders are confronted with a serious problem. They need to export food abroad and interact with foreign currencies. The financial system \u2014 particularly in Africa \u2014 is, however, underdeveloped. Inefficiencies in their trade result in high transaction costs, delayed cross-border payments, and high interest rates for loans. Large corporations can better navigate financial hurdles, but this isn\u2019t always the case for small farmers, who suffer the most from outdated banking systems.
\nBlockchain technology and stablecoins promise to smooth unstable waters for agricultural traders. Eliminating intermediaries and providing financial inclusion, the technology gives farmers direct access to global markets. With Africa\u2019s food and agriculture market predicted to be valued at $1 trillion by 2030, stablecoins stand to be much more than simply another financial trend for the industry.
\nCross-border payments are hiding significant costs
\nCross-border payments are the beating heart of agricultural trade, central to accessing resources, such as equipment and seeds, or engaging in trade between countries. International transactions are vital to African agriculture, as exports within Africa represent only 17% of total African exports.\u00a0
\nLocal banking systems are, however, underdeveloped and impede these payments to a shocking degree. A huge sticking point is that traditional banking systems are expensive \u2014 they charge farmers between 3% and 6% in fees. This is no small matter when profit margins are already thin.
\nIn transactions, the demand for an intermediary currency, typically the US dollar, leads to even more exchange rate losses, often falling within the 3%-10% range. This affects small businesses in Africa, which can pay nearly 200% more than larger companies to clear their transactions through formal channels.
\nAs if the expense wasn\u2019t bad enough, the process is also painfully slow. Farmers can expect to wait up to 120 days for payment settlements. These delays are devastating for businesses relying on quick access to funds. They are forced to take out high-interest loans with no immediate liquidity, further eroding their earnings.
\nStablecoins can fix agricultural trade
\nFrustratingly outdated financial systems hamper the global agricultural industry, but a glimmer of hope is arriving in the form of stablecoins. Poised to reshape the agricultural trade, crypto offers farmers three key pillars of transformation.
\nStablecoins mean farmers and traders can bypass banking inefficiencies. With intermediaries taken out of the picture, they can transact instantly and with lower costs. Farmers save between 3%-6% per payment, and funds are received in minutes rather than in painful waits of weeks or months. The result? These players have the working capital needed to stay in business.
\nTraders can forget about unstable local currencies. By pricing their goods in a stable digital asset, they can gain access to global markets. Fluctuating exchange rates will become a problem of the past. Businesses operating in countries with volatile currencies will feel that relief most acutely, as sudden devaluations in a currency have the power to wipe out profits overnight.
\nRecent: Web2 is failing vertical farms \u2014 they need DePIN to survive
\nThe agricultural trade is crippled by immense, systemic fraud and supply chain inefficiencies, with global food fraud costing $40 billion annually and global trade in fake goods another staggering $500 billion. Stablecoins could be transformative in reducing the original movement of counterfeit goods across supply chains, making the industry far more efficient.
\nResults are already being seen in African agribusiness. Zimbabwe-based conglomerate Parrogate, for example, is committing to blockchain to streamline payments to its suppliers while improving cross-border trade efficiency. The company, which prides itself on growth and development across the continent, is just one of numerous African businesses getting behind stablecoins and reaping the benefits.
\nAgriculture still faces global challenges
\nStablecoins should be music to the ears of those working in agriculture. The road there could, however, be rocky. Significant regulatory uncertainty, especially in Africa, is one hurdle. Many nations have strict capital outflow controls, so farmers and traders must comply with local regulations or face legal issues.
\nAnother limitation is technological barriers and an education gap across the industry, which prevent some farmers from fully grasping and using the technology. European farmers, who need stablecoins less because infrastructure is pretty well established, will also not have full access to these stable mechanisms for facilitating trade.
\nThere are barriers, but the demand for stablecoins in African agriculture is undeniable. There is a strong willingness within the agricultural community to get on board with compliant stablecoins that support cross-border liquidity.
\nThe mass adoption of stablecoins won\u2019t happen overnight, but that\u2019s not to say that this industry isn\u2019t progressing toward the digital. The offer of stablecoins is tantalizing \u2014 instant transactions, lower fees and enhanced financial access. It\u2019s only a matter of time before more farmers make the switch.
\nAgricultural traders struggling under the weight of an outdated and intrusive banking system are ready for greater financial inclusion. And we should be, too. This industry connects us all and will be lifted by stablecoins. The tech will be transformative for the field \u2014 not just as an innovation, but as an essential evolution.
\nOpinion by: Henry Duckworth, founder and CEO of AgriDex.
\nThis article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author\u2019s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"

Source: Cointelegraph.com NewsOpinion by: Henry Duckworth, founder and CEO of AgriDex We all need and buy it. Food is a common, universal ground across the planet. It should come as… <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/127568"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=127568"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/127568\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=127568"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=127568"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=127568"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}