Habanero-Pepper-Backed Cryptocurrency Is Possible Because, Why Not?
Agrocoin is a digital currency backed by a square metre production of hydroponic habanero pepper – touted as the spiciest peppers in the world. According to the general director of Agrocoin, Pablo Arteaga Vega, the goal of the cryptocurrency is to provide the public with a profitable investment instrument that could give a 30% annual yield. Agrocoin forms part of Amar Hidroponi – a company based in Mexico that cultivates habanero chilis. A square metre of pepper is worth 500 pesos and is equivalent to an agrocoin franchise unit. The blockchain-technology based Agrocoin began circulation in 2017. According to Amar Hidroponi president, Rodrigo Domenzain, Agrocoin is solidly “backed by agricultural goods”. Vega claims that Agrocoin is the world’s first virtual coin that is supported by “a productive asset of the agroindustrial sector”.
Vega explained that a franchise of Amar Hydroponics costs more than 3 million pesos – an amount most people in Mexico do not to have. Thus the creation of an Agrocoin in order to allow a large number of people to gamble on hydroponics in a manner that “pulverize(s) the investment”. Chunking a portion of the large 3 million peso amount allows more individuals to invest. Vega added that, despite the inherent volatility present in cryptocurrencies, Agrocoin’s advantage is its stability. Habanero peppers are an essential part in Mexico’s cuisine, specifically in the Yucatan Peninsula. It also has a stable price in the market where demand is constantly present, specially in the United States mainland. He added that Agrocoin is set to follow Fintech Law regulations proposed by the Financial Technology Institutions and apply them to agricultural issues specifically in preventing money laundering and the financing of terrorism. Agrocoins could be easily purchased from the company’s online site. A one year lock up period is required, after which, the digital currency can be exchanged on a virtual currency trading platform. So far, 50,000 units have been sold from the 1 million the company is planning to release.