Title: National Bitcoin Office Raises Concerns Over Agreement to Reward Salvadoran Coffee Growers with Bitcoin
Introduction:
The National Bitcoin Office, associated with the Presidency of El Salvador, has called for an urgent review of an agreement that authorizes US company Making Coffee to reward Salvadoran coffee growers with bitcoins. The office has expressed concerns about the legality and appropriateness of any associated non-fungible token (NFT) issuance in this partnership.
Details of the Agreement:
Making Coffee aims to enhance transparency and equity in Salvadoran coffee production by using blockchain technology, including bitcoin (BTC). The company plans to distribute coffee from El Salvador to stores in the United States, offering buyers the opportunity to learn about the production phases, connect with producers, and tip them in BTC. Each coffee bag will have a QR insert, leading buyers to a website showcasing the coffee’s preparation process and the people behind it. This platform will also enable buyers to compensate producers directly using bitcoin.
Payments and Technology:
To facilitate the payment of tips, the agreement mentions the use of technologies such as the Goat Wallet, developed by the Salvadoran government for BTC transactions. Furthermore, Bitcoin Lightning technology will be employed for the integration of bitcoin payments.
Bitcoin Office and NFT Issuance:
The involvement of NFT issuance in the agreement has drawn attention from the National Bitcoin Office. The office, established by President Nayib Bukele, raises questions regarding the inclusion of non-fungible tokens, as suggested in the agreement, which mentions the use of “other blockchain technologies.”
Continued Investigations:
President Bukele has expressed that investigations into the agreement with Making Coffee will continue. The Ministry of Agriculture, which authorized the partnership, has not provided additional information on the matter at this time.
Coffee Growers’ Perspective:
Coffee growers emphasize the importance of verification and knowledge when dealing with bitcoin. They highlight the need to educate people and work towards adopting the bitcoin standard, stating that some individuals take advantage of others’ lack of knowledge.
Acquisition of Salvadoran Coffee:
Making Coffee has purchased 30,000 pounds of coffee from small and medium Salvadoran producers, with a commitment to buy a million pounds in the coming months. The government has arranged for the producers to receive tips in bitcoin, providing training through the Chivo Wallet team.
Conclusion:
While the Ministry of Agriculture has yet to comment further on the agreement, the National Bitcoin Office’s concerns indicate the need for a comprehensive review of the authorization. As El Salvador continues to embrace bitcoin, the involvement of blockchain technology in the coffee industry raises questions about the legal and appropriate use of such innovations. The investigations into this agreement will shed further light on the potential impact of cryptocurrency in the agricultural sector.