- Title: Brazil frost boosts market for coffee coin cryptocurrency
- Date: 2nd August 2021
- Summary: VARGINHA, MINAS GERAIS, BRAZIL (JULY 30, 2021) (REUTERS) VARIOUS OF COFFEE PLANTS WORKER CLEANING COFFEE WITH STRAINER HARVESTED COFFEE NEXT TO CARDBOARD COFFEE COIN CARDBOARD COFFEE COIN
- Embargoed: 16th August 2021 22:20
- Keywords: coffee cryptocurrency
- Location: VARGINHA, MINAS GERAIS, BRAZIL
- City: VARGINHA, MINAS GERAIS, BRAZIL
- Country: Brazil
- Topics: Environment,South America / Central America
- Reuters ID: LVA001EOL8N5Z
- Aspect Ratio: 16:9
- Story Text:A coffee coin, the first cryptocurrency in the world backed by coffee stocks, registered an appreciation of more than 35% in its first month of negotiations driven by frosts in Brazil and investor demand.
The cryptocurrency, created by the Minasul cooperative, is adjusted by the variation of coffee in the physical market. The price is also influenced by the demand for coffee coin investors in the so-called secondary market.
"The coffee coin is a stable coin, unlike other cryptocurrencies that do not have a physical reference of its value," Minasul's New Businesses director Luis Henrique Albinati told Reuters.
The value of the currency, which traded above 18 reais ($3.48) at the end of last week, has dropped to around 16.50 reais ($3.19) this Monday (August 2) amid a decline in physical prices, pressured by quotations on the New York Stock Exchange after last Friday's (July 30) frosts were less intense.
During its first month, the asset launched at 13.69 reais ($2.69) accumulatin at a high of 36.6%, while the physical coffee market rose 31.5% in the same period.
(Production: Pablo Garcia, Geraldine Downer, Nina Lopez)
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