EthicHub has announced that its P2P lending platform will now be available in Ecuador in order to finance small cocoa farmers in the area.
This is a solution based on blockchain technology from which unbanked farmers who are part of the EthicHub ecosystem will be able to enjoy benefits.
with this project now Ecuador joins the list made up of Mexico, Brazil and Honduras, countries that were already using this solution. This expansion of EthicHub to Ecuador is given together with NortFruit that “which will be the new originating node in the country”, according to the official statement.
“Having the Ethichub team as a guide to learn about this “new” (for us) form of financing, using cryptocurrencies, has made it easier for us to understand and we have learned a lot for which we are grateful,” said Dannes Aguas from NortFruit.
He also added that with this joint work they are closer to “achieve our objective of generating development for small Ecuadorian farmers with limited resources”.
With this EthicHub solution, anyone can help farmers by financing their crops with little money and later they will be paid annually with 8%.
For Gabriela Chang, co-founder of EthicHub “The beautiful thing about the project is that we provide small producers with a new financing tool at much cheaper and more accessible interest rates, creating an ecosystem where all the actors benefit from the relationship and mutual collaboration”
The EthicHub token, Ethix, is the insurance for farmers’ loans, and Chang explained that it was designed to offer “lThe possibility that any holder of our token can participate in this collective collateral and guarantee the incorporation of these farmers. For the peace of mind of investors, the loans agreed with NortFruit are 100% collateralized in our token. The originator node provides 10% of the collateral, the auditor node another 20% and the remaining 70% is contributed by all the ethichubbers, who use our ethix so that this new incorporation can materialize. This is how we achieve that this profile of people, workers and very knowledgeable about field tasks, can participate in the platform and access better financing than they currently suffer, solving the problem that they do not have their own guarantees”.
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