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Brazil’s São Paulo to Launch Blockchain-Based Microloan Program for Farmers

Brazil’s São Paulo to Launch Blockchain-Based Microloan Program for Farmers

Cryptonewsland2025/11/29 14:45
By: by Wesley Munene
SOL-0.19%TANSSI-2.34%
  • São Paulo’s microloan program offers farmers up to R$15,000, powered by a Tanssi-built blockchain.
  • Tanssi’s private blockchain ensures reliable, predictable transaction costs, crucial for managing public funds.
  • The initiative builds on the success of a previous pilot in Santo Antônio da Alegria, focusing on rural development

A new blockchain-driven initiative in São Paulo, Brazil, is set to offer microloans to small-scale farmers. The project, backed by the local government and developed by the fintech company Tanssi, will provide rural producers with loans of up to R$15,000 (roughly $2,800). It aims to improve access to credit and financial support for farmers in remote areas, with the program expected to go live next month.

Blockchain Technology Powers Microloan System

Unlike traditional lending systems, this initiative uses a blockchain infrastructure built by Tanssi. The blockchain will operate in the backend, providing the program with more reliable and predictable transaction costs. Unlike public blockchains such as Ethereum or Solana, which can experience unpredictable fees and delays, Tanssi’s technology ensures consistency. This level of reliability is crucial for managing public funds and maintaining transparency in the loan distribution process. 

The use of blockchain is designed to minimize risks and enhance control over the system. By operating in a closed ecosystem, the project ensures that funds are only used as intended. Farmers will access the loans through a mobile app, and physical payment terminals will be available for transactions. According to Tanssi’s Director of Business Development during an interview with CoinDesk, Luis Dal Porto, the decision to use private blockchain technology instead of public networks stems from the need for predictability in costs. 

Public blockchains quite often have network congestion, transaction fees that fluctuate, and sometimes even downtime. If these problems happen, they will definitely put more pressure on the reliability that the microloan program needs, especially since it is dealing with taxpayers’ money. Dal Porto emphasized that the project’s priority is to ensure that every transaction cost is fixed and easy to forecast. This guarantees that the funds lent to farmers are used efficiently without unexpected price fluctuations.

Pilot Program and Future Plans

The program will build on the success of a previous pilot project in the town of Santo Antônio da Alegria. This initiative used a closed token system to distribute municipal aid, such as food benefits. The token system restricted how funds could be spent, preventing misuse on non-essential items like gambling.

The São Paulo microloan program, which is going to start next month, is considered a small part of the big picture of Brazil’s efforts to support small-scale farming and rural development. A full implementation of the digital currency by Brazil’s central bank has been put on hold. 

However, it is assumed that the country’s municipal and private blockchain projects would continue to grow side by side. The Tanssi-powered blockchain microloan initiative marks an innovative step toward improving access to credit for small farmers, with a focus on stability, security, and efficiency.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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