Ukraine to Get a Decentralized Agricultural Commodity Exchange in 2019

Ukraine to Get a Decentralized Agricultural Commodity Exchange in 2019

In 2019, Ukraine will launch what it claims to be the world’s first decentralized agricultural commodity exchange via blockchain technology. Will the model inspire similar initiatives in other countries?

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Agricultural Trading, On Chain

The project aims to create a trading platform for all kinds of players in Ukraine’s agricultural industry, Roman Nazarov, general director of the local company Digital Pulse of the Land, was quoted as saying by Ukrainian news agency UNIAN.

“Every user of our platform will be able to share their expertise and implement innovational technological solutions, which would lead to more efficient operations,” he said.

According to Nazarov, the exchange will be launched in several of Ukraine’s regions, and the launch is tentatively scheduled for next spring.

Digital Pulse of the Land will carry out the project in collaboration with London-registered firm Suntri Blockchain Operating System and Madagascar-based Hola.

The blockchain-based platform will be open to all companies and individuals operating in Ukraine’s agricultural sector.

“All market participants will be able to gather on the platform,” local trader Igor Tinkov, who is also involved in the project, told UNIAN, adding that derivative hedging instruments will also be available on the exchange.

The advantage of a decentralized agricultural commodity exchange over existing similar institutions is a high degree of data security, high transaction speeds, and the ability to operate on a 24/7 basis, he added.

With licensed crypto mining officially allowed in the country, Ukraine is one of the most crypto-advanced former Soviet Union states.

Ukrainian Administrators Turn to Distributed Ledgers

For much of the past year, government officials have been speaking favorably about adoption of blockchain and crypto and possibly making Ukraine a crypto-friendly country along the lines of Malta or Switzerland.

In late September, a proposal was submitted to the local Parliament, the Supreme Rada, that all businesses related to blockchain and crypto be exempt from taxes for a 10-year period, and the proposal is still under consideration.

An alternative draft stipulates a grace period for taxation of crypto transactions through 2025.

In June this year, Ukraine’s cabinet of ministers ordered that the country’s land registry be transferred to the blockchain.

The country has also been toying with the idea of introducing a state-backed crypto-currency, e-Hryvnia.

What’s your take? Is a decentralized agricultural commodity exchange a viable use for blockchain tech? Let us know in the comments section below. 

Images via Pixabay

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