Budweiser Develops Blockchain System to Support Local Farmers Improve Operations
The owner of the famous Budweiser beer, AB InBev, announced today, it has developed a blockchain-based system to help its farmers improve transparency in the supply chain of raw material.
According to the report, the giant drink company reached a partnership with BanQu, a non-cryptocurrency blockchain platform, in order to establish the system.
AB InBev had preferred using local farmers to source for materials such as barley and malt, instead of importing large quantities of these items to different countries in Africa.
Sometimes these farmers find it difficult to prove their Income, which relates to the fact that they lack the necessary paperwork to confirm growth. "Even when their yield triples or quadruples, they continue to be very small," the CEO of AB InBev, Carlos Brito, said at the World Economic Forum on Tuesday.
In what could be the ultimate reason behind the development, Brito noted that needed middlemen to consolidate cargoes to send to most of their breweries by the truckload, however "this middleman was not necessarily passing the money we were paying to him or her to [the farmer]."
AB InBev Assist Small Farmers to Expand Using BlockchainHence, to help resolve the issue, AB InBev developed the blockchain system, which tends to allow these farmers to open up bank accounts directly as well as to create a line of credit, given that, banks can be able to verify and trust blockchain ledgers.
"And now this farmer, who was never bankable — because she couldn't prove income of any source, had no reports, or material or paperwork — now in a flip phone, she has in the blockchain proof that she is a supplier to AB InBev, a global company," the CEO added.
The blockchain-based system will not only help the local farmers to expand their business through the line of credit but will also help them prove that they are suppliers of the world's largest drinks company.
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Ibiam WayasIbiam Wayas is an optimistic crypto news reporter who also enjoys tech writing. He is an introvert who spends much of his time on the internet studying facts that will help him excel in the digital/cryptocurrency space.
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