Brazilian farmers tokenized dairy cows to get loans, bypassing bank limits

ppaulpauper about 2 hours ago 21 commentsRead Article on coindesk.com

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Discussion (21 Comments)Read Original on HackerNews

vvpan•8 minutes ago

Real World Assets (RWA) is the hot stuff these days. While it is still early the mega-banks are starting to pile on.

One of the reasons is that any infrastructure built on blockchain is reusable for free by everybody (minus transaction free). Uniswap and Aave have been chugging along for years and are starting to acquire reputation beyond retail. Privacy is moving along as well where you can tokenize, say, bonds and hide the in/out flows with ZK proofs.

You can track RWA issuance here https://app.rwa.xyz/

Animats•7 minutes ago

"It also includes built-in safeguards that allow the farmer to swap one dead cow for a live one."

Is that backwards? If you own the token for a cow, and it dies, what happens?

tiffanyh•about 1 hour ago

Using livestock as collateral is one of the oldest ways to obtain a loan.

marcosdumay•37 minutes ago

It's also one of the most famous recurrent scams in Brazil.

bernardom•about 1 hour ago

Brilliant idea, but why the crypto? Couldn't you simply do the collar + web connection... without crypto?

asxndu•about 1 hour ago

With what platform? Stripe, Visa and Banks that arbitrarily ban users?

nickphx•39 minutes ago

huh? platform? lol. you go to bank with proof of collateral.. get secured loan. wtf does everything need a platform or some VC garbage scrambling to find rent.

Brian_K_White•1 minute ago

even the title says the bank does not give you the loan

pstuart•25 minutes ago

because blockchain blockchains!

I must confess I'm enamored with the concept of blockchains, but find their value questionable for the most part.

I even worked for a blockchain startup (non-crypt) but left on less than good terms and a fair amount of PTSD. They were nuts!

chrisjj•7 minutes ago

[delayed]

tamimio•about 1 hour ago

This is how economy should work, based on physical tangible assets that owned/existed, not some imaginary value based on whatever speculation, that what ruined housing market, what inflated stocks and allowed cons to get wealthier, it’s also why a lot of companies make fake job posting or pr stunts, it’s all to inflate that imaginary market currency then use it to get a real cash, that should be illegal and is a form of Ponzi scheme fraud, if a house as-built cost is 70k, it shouldn’t be sold for 800k, and the owner shouldn’t be able to use that speculative value to get a 600k loan.

WalterBright•about 1 hour ago

It sounds like you're suggesting a barter economy. It works like this:

1. Bob grows oranges, and wants shoes

2. Ted hunts for meat, and wants oranges

3. Sam makes shoes, and wants meat

The only way this can work is to have a 3-way transaction. But with a money system, the money is traded without needing a 3-way transaction. It's much more efficient.

tamimio•40 minutes ago

Not really, I am not saying to remove moneys entirely and use assets trading only, but the money printed or valued should be based on tangible assets, actual cost, not some made up speculation. As I mentioned above, a house that cost 100k to build and handover should never exceed that value plus profit markup, the older it gets, the cheaper it should be, just like any other assets and like how japan did it to solve the greedy banks/landlords. But obviously such thing needs to be done in an authoritarian manner as in normal democracy it will never be voted for, since most voters are owners. Other examples apply too on why things are waay over inflated for what they worth, including stocks.

daedrdev•24 minutes ago

This is because our glorious government makes it illegal to build housing. Japan doesnt force anything, their private companies built tons of housing because there is profit to be made and its not illegal without years of reviews, insane taxes, bribes to various orgs, etc.

Your policy doesn’t even work in CA, new housing is absurdly expensive to build and the profits aren't even high.

throw1234567891•38 minutes ago

There are no moneys, only money. I don’t understand your reasoning. Why should a house never become more expensive? I built a house in s remote area, 20 years later the region is much more appealing, public transport, shopping, why should I charge less than the market is willing to pay?

nubg•35 minutes ago

Did it cost 100k to build? How much was the cement worth? Etc. now to create a house from scratch, you must first invent the universe

dewey•40 minutes ago

You should probably read up on why humans initially switched to the currencies or the gold standard later.

Personally I found this one quite interesting. https://www.lynalden.com/broken-money/

guess_who_is_it•about 1 hour ago

coindesk only promotes ztrash