AAA Reserve can enable a more efficient supply chain in agriculture - providing farmers and distributors with faster settlement at fairer prices
Many farmers in developing countries are losing out due to the practice of subsidies and agricultural policies in developed economies, as well as the purchasing power exerted by downstream manufacturers and distributors. However, the growth and popularity of Fairtrade products clearly demonstrates a desire by the end consumer to pay the farmer a fairer price.
Blockchain technology can provide end-to-end viability of the custody of produce - from farm-to-fork - and it can also provide indisputable pricing information, enabling the consumer to see how much a farmer is receiving for a particular good.
AAA Reserve currency is working with agricultural blockchain specialists to provide a stable currency which farmers can receive and rely upon, and consumer can see.
It is a well recognised fact that many farmers - in developing or developed economies - operate at the economic whim of downstream organisations, who control payment cycles and often extend payment terms at the detriment of the farmer.
Smart contracts can ensure that settlement occurs at the point of delivery - rebalancing the working capital burden placed on farmers. However, for smart contracts to work end-to-end - including settlement - it requires a cryptocurrency to be the accepted form of payment. And many farmers would be understandably reluctant to accept BTC given its inherent volatility.
AAA Reserve currency is working with supply chain experts, to enable the AAA Reserve to be adopted in smart contracts - providing faster payments, with a more certain outcome for farmers.