A new digital currency is creating waves in the financial and the commodity markets. It is the Coffee Coin that has built a promising start since its launch in early July. It is bringing producers, growers, and also traders of coffee to Brazil, which is the largest producer of coffee around the world. Let us discuss this unusual cryptocurrency.
What Is A Coffee Coin?
Coffee Coin (CFC) is the world’s first digital currency that is backed by the physical stocks of the green coffee. Each Coffee coin price is valued at the market price of green coffee, but along with that, it is also influenced by investment demands.
This coin was launched at the starting of July 2021 by the second largest Arabic cooperative in Brazil, Minasul. These Coffee coins can be traded at the exchanges. These exchanges include StoneEx, which is also a partner in this project.
Who Chooses Coffee Coins?
This coffee coin is chosen by the farmers who are members of the cooperatives. They can purchase the digital currency against their output of coffee in the present season as well as in the future. They are eligible to trade 30 per cent of their present harvest against these coffee cryptos. Farmers can also utilize these cryptos to purchase the inputs of the farms along with other goods.
Other than farmers, the investors can also purchase coffee tokens and trade them for either physical money or green coffee which should be in lots of 1,500 kgs.
Impact Of Coffee Coins In Trading
In effect, the digital currency offers one to purchase coffee stocks with the push of a button. This can genuinely bring far reaching alterations in the way the market of coffee and its participants functions in Brazil. Since the largest producer of coffee in the world is Brazil, traders globally are having a keen vision on the Coffee coin.
Is It A Good Investment?
This digital currency is predicted to be less fluctuating as it is connected to the market value of physical commodities, in this case, coffee. The value of other digital currencies such as Dogecoin and Bitcoin can be affected by the speculation and at certain times tweets by celebrities. It is also considered a safe asset as it has the backup of physical assets and a big coffee cooperative.
How Has The Price Of This Coin Moved So Far?
In July 2021, which is the first month since its launch, the value of this cryptocurrency has increased by more than 35%. This is because the bad weather has troubled the outlook for the production of coffee in Brazil. Along with that, the demand for investment has also helped in this increase.
How To Buy Coffee Coin?
Now that you know about the foundation of the coffee coin and have understood its appealing effect in the cryptocurrency market, let us now quickly see how you can purchase or invest in a coffee coin. So to buy Coffee coins.
- The first thing that you will need to do is open an account at any digital currency exchange.
- After you have opened your account, first invest in either Bitcoin or Ethereum.
- Once your investment procedure is over, transfer them into an exchange that offers Coffee coin.
- With Ethereum or Bitcoin, purchase this coin.
If you are reading this conclusion, then by now you know every detail about the Coffee coin. Now you may wonder, can Indians Buy Coffee Coins? There is no restriction on purchasing digital currency in India as of now even though the RBI and the Indian Government have laid several guidelines on the same. In India, there is no law governing digital currencies yet. The Indian Government with the backing of RBI has scheduled a launch of their central digital coin.
Frequently Asked Question On Coffee Coin
1. What is a coffee coin?
It is the world’s first digital currency that is backed by the physical stocks of the green coffee. Each Coffee coin price is valued at the market price of green coffee, but along with that, it is also influenced by investment demands.
2. Is Coffee Swap and Coffee Coin the same?
No. Both are not the same. Coffee Swap coin is a decentralized application channel that enables staking and farming in the Binance Smart Chain network and also enables you to communicate with the original Ethereum network via Cross Chain technology.