Thank you, Vanessa Colella, for recognizing the importance of our joint efforts in Brazil and Argentina! By tokenizing crops prior to harvest, we’re not only enabling small farmers to access liquidity but also redefining how agriculture integrates with global financial systems. It’s an honor to join efforts with Visa on this transformative journey. Eduardo Novillo Astrada (h) Ariel Scaliter
What’s the most exciting innovation that we’ve worked on at Visa? That’s like asking me to pick my favorite child. One thing I am really interested in (almost obsessed with) is the potential of embedded finance, and you should be too. Let me tell you why… At any given moment, there is a ~$1.7 trillion gap between the goods moving around the world and liquidity, or financing, for those goods. The crazy thing about this is that the $1.7 trillion burden is borne almost entirely by the smallest suppliers. Just think about that — in a large company, you can dictate payment terms. But when you’re the smallest supplier at the very end of the supply chain, you usually get paid when you can get paid. That is not right or sustainable. At @Visa, we think that if we can start to get payments embedded in business, logistics, and the supply chain, we would be able to shrink that $1.7 trillion gap and help small businesses and entrepreneurs grow. And as the lifeblood of the global economy, when these small businesses grow, the GDP of countries increases too. A great example of this is the work we’re doing in Brazil and Argentina with a company called @Justoken to tokenize crops prior to harvest. For all of time, farmers have sold their crops in advance of harvests when they needed funds to invest back into the business. But as you can imagine, a small farming operation doesn't have much leverage, so they tend to take a very steep discount on the whole crop. By tokenizing these crops, we can allow farmers to bid out their crops to multiple banks and fractionalize their asset, so they only sell the part of the crop that they need to, to get as much liquidity as they need at that moment. For us, this is a real example of tokenization that catapults it from a buzzword to something that will transform economies and communities around the world. #FinTech #Finance #Innovation #Tokenization