#Ripple releases XRP Ledger to revolutionize the agricultural economy of Colombia by providing traceability, sustainability premiums, and access to microfinance for small farmers.
Ripple uses $XRP Ledger to support Colombian farmers with blockchain and microfinance
On May 15, Ripple announced the launch of its second pilot project this year with the Mercy Corps Ventures fund in partnership with traceability technology provider WËIA to promote agricultural financing in Colombia. The initiative is part of Ripple Impact's broader program 'Opening Opportunities' and focuses on using blockchain technology to improve the livelihoods of small farmers. Ripple emphasized the project's goals:
In collaboration with WËIA, this pilot project is designed to increase financial inclusion and income for small farmers in Colombia through blockchain-based traceability via XRP Ledger (XRPL).
The pilot project uses the WËIA tracking platform built on $XRP Ledger to track the production of agricultural goods—specifically, panela, traditional unrefined cane sugar—from planting to harvesting. The system assigns a QR code to each product, providing verifiable information about sustainability, which meets the growing demand for transparency in global food supply chains. The speed, economic efficiency, and carbon-neutral architecture of XRPL provide the technical foundation for a reliable, immutable accounting system. Additionally, the pilot project introduces financing based on 'Grow now, pay later' (FNPL), allowing farmers to acquire materials upfront and defer payment until after the harvest. This mechanism aims to alleviate liquidity constraints that have historically limited farmers' productivity.
About 300 small farmers will participate, processing a total of 240 tons of panela per month. The program also emphasizes gender inclusion, with 46% of participants being women, significantly higher than the national average of 26%. The pilot project aims to verify three main outcomes: does verified information about sustainability lead to higher product prices, does transparency increase retailer satisfaction, and does blockchain traceability encourage more formal agreements between farmers and buyers.
Ripple described the broader significance of the project:
This pilot project offers a unique opportunity to demonstrate real-world applications of blockchain to enhance traceability in agriculture, creating pathways for small farmers to access financial services, improve their living conditions, and ensure compliance with global sustainability standards.
