Farmers are switching to stablecoins
The agricultural industry is significant, with the EU importing 154 million tonnes and exporting 134 million tonnes of agricultural products in 2023. The market is projected to grow at 3.45% annually, reaching $5.52 trillion by 2029. Farmers face challenges with outdated banking systems, leading to high transaction costs, delayed payments, and high loan interest rates. Small farmers are particularly affected, often paying 200% more than larger companies for transactions. Stablecoins offer a solution by eliminating intermediaries, reducing costs by 3%-6%, and enabling instant payments. They can stabilize pricing against volatile local currencies and combat fraud in supply chains. However, regulatory uncertainty and technological barriers may hinder adoption in Africa. Despite these challenges, there is strong demand for stablecoins in agriculture, indicating a potential shift towards greater financial inclusion and efficiency in the industry.
