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  • Why does tokenization in agriculture remain in the sights of traditional companies and investors?

Why does tokenization in agriculture remain in the sights of traditional companies and investors?

Agribusiness in Brazil grows stronger every day, becoming one of the most solid and profitable sectors for investment. Just last year, the country’s GDP was calculated at almost R$10 trillion and the sector contributed 25% of this result, according to data calculated by the Center for Advanced Studies in Applied Economics (Cepea/Esalq/USP), in partnership with the Brazilian Agriculture and Livestock Confederation (CNA).

Parallel to this, agro credit originators are increasingly seeking opportunities to finance the production chain outside traditional means. Accompanying this revolution, tokenization in the field of agribusiness stands out not only to companies and investors, aiming to increase profits, but also to banks themselves, in order to make operations more efficient and embark once and for all on one of the most important areas of the cryptoeconomy. observed in recent times. In other words, we are living to see a reconfiguration of the roles of market agents.

In addition to gaining efficiency for everyone involved, tokenizing in agriculture also combines security, transparency, greater liquidity and lower costs to optimize relationships and profits, thanks to encrypted records that will represent an asset traded on the blockchain.

It is possible to tokenize, for example, stocks of agricultural products, rights to future harvests, dairy production from a herd, patents, new projects in biotechnology, mechanization and sustainability, properties linked to the sector and so on.

In other words, all this movement gives power to those with large volumes of operations. This way, you can choose and give the best credit when necessary.

Among all the advantages on the scene, there are three differences that stand out in the tokenization of agribusiness:

1 – Absence of intermediaries: bureaucracy and reduced costs;

2 – Without geographic limitation: increases the target audience base;

3 – Total system availability: encourages investors abroad.

As can be seen, the present and future of agribusiness are based on the transformation of management and operations and the massive use of new technologies, which offer a more accessible, transparent and efficient environment for everyone. Tokenization has already revolutionized agriculture and continues to break standards that no longer meet the strategic needs of the sector.

 

Source: Exam

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