Using technology such as blockchain could prevent global civil unrest triggered by volatility in commodity markets, according to technology experts.
Volatility in commodity markets is likely to increase over the next few months, and this could lead to greater civil unrest – especially in the developing world – which could require military intervention.
This recently happened in Tanzania over the pricing of its 2018 cashew nut harvest.
The warning comes from Unleashing the Wealth in Nations (UWIN), a blockchain business aiming to transform farming and commodity trading in the developing world.
Experts have frequently highlighted how the technology behind cyptocurrencies such as Bitcoin could revolutionise the food and farming industry by increasing transparency.
Julius Akinyemi, CEO of UWIN said: “The current cashew nut price crisis in Tanzania, where the president ordered the army to buy the country’s 2018 nut harvest thereby diffusing a volatile stand-off between farmers and buyers, could be the start of more civil unrest in developing countries caused by growing volatility in commodity prices.
“A slowing global economy and the US dollar’s relentless march upwards will only put more pressure on already low commodity prices. The price of crude oil, for example, has already fallen by over 20% since early October.”
To help address this issue, UWIN says commodity markets and countries heavily reliant on the commodities they produce, need to make greater use of technology such as blockchain to bring more transparency and efficiency to their operations.
UWIN is currently in discussion with African governments on how they could use its new and unique technology proposition that for the first time will enable farmers in the developing world to properly register their commodities, mobilise them and efficiently trade their produce on a trusted platform.
Blockchain is a ledger where transactions are recorded and confirmed, acting as a record of events that is shared between many parties.
In a food supply chain, for example, a failed test and inspection on a product at any stage of the supply chain will be automatically traced to the origin of the failure.
Blockchain technology also monitors food supply chains because it is open to any participant and any type of information can be entered.
It also uses cryptography to protect commercially sensitive information as well as being able to use smart contracts - a set of automated rules governing a transaction - to provide extra security.
