São Paulo Launches Blockchain Microloans for Farmers
- Main event, launch of blockchain microloans pilot in São Paulo.
- Small farmers access up to R$15,000 loans.
- Utilizes Tanssi’s private blockchain platform.
Brazil’s São Paulo city government is piloting blockchain-based microloans for farmers, collaborating with fintech Tanssi to deploy loans through an app and payment terminals, launching December 2025.
The pilot could enhance financial inclusion and risk control in agriculture through blockchain, with little immediate impact on public crypto markets due to its closed ecosystem nature.
São Paulo’s government and fintech company Tanssi are driving a pilot project to issue blockchain-based microloans for farmers. The initiative aims to provide R$15,000 loans to small farmers using a mobile app and payment terminals. The project uses a private blockchain for predictable fees.
Promoting Financial Inclusion
The collaboration between São Paulo’s government and fintech company Tanssi aims to improve financial accessibility for small farmers. Tanssi’s Director, Luis Dal Porto, noted that “in practice, the blockchain isn’t even seen. It is a mobile app that they offer to producers. They also have physical payment machines. It is an entirely closed ecosystem they offer to achieve more control of how the credit is used and to mitigate risk” (CoinDesk). The project employs a private blockchain to avoid the volatility that impacts public blockchains, and uses proprietary tokens with specified expenditure rules to manage credit responsibly.
Trend Towards Blockchain Solutions
The pilot expects to improve financial inclusion among small farmers in São Paulo, potentially boosting local economic activity. By employing blockchain technology, transparent loan issuance and risk management can better assist small farms in accessing needed capital safely.
This project highlights São Paulo’s broader interest in integrating blockchain technologies, aligning with initiatives such as the digital identity system and the central bank’s digital currency project, Drex. The focus is on risk mitigation and enhanced regulatory compliance in financial transactions.
Other municipalities, like Santo Antônio da Alegria, have also tested blockchain apps for local transactions previously. The transitions indicate a potential trend towards adopting innovative blockchain solutions tailored to specific local needs, ensuring economic inclusivity and transaction stability.
Further expansion of blockchain-driven financial solutions in Brazil suggests potential regulatory advancements and technological growth. The outcomes of São Paulo’s pilot may influence broader policy and market behaviors, underscoring blockchain’s viable role in economic development strategies.
