365Crypto
U.S. Coffee Company Buys Salvadoran Coffee Using Bitcoin
Compass Coffee, a U.S.-based company, has successfully purchased Salvadoran coffee using Bitcoin, avoiding traditional banking intermediaries. This marks a step forward in using cryptocurrency for international trade, particularly for commodity purchases like coffee.
Faster Payments Without Intermediaries
The transaction was completed in under 10 minutes, according to Jorge Cruz, the Salvadoran coffee producer involved in the deal. Using Bitcoin allowed for direct payments, bypassing banks or other third parties, which typically take a cut from transactions.
Competitive Prices for Producers
Salvadoran producers received higher prices for their coffee—two to three times more than U.S. market prices. The Salvadoran ambassador to the U.S., Milena Mayorga, highlighted how Bitcoin payments benefit producers by eliminating intermediary fees, ensuring they receive fairer compensation.
Promoting Bitcoin in El Salvador
The purchase is part of ongoing efforts to promote Bitcoin in El Salvador’s economy, especially for international trade. Companies can use Bitcoin for settlements, providing a more efficient payment option for cross-border deals.
Future Growth and Direct Payments
Compass Coffee’s COO, Chas Newman, credited the Salvadoran Embassy for facilitating the deal and helping local producers expand their market in the U.S. He also revealed that coffee buyers will soon be able to tip producers directly through Bitcoin, further supporting Salvadoran farmers.
