US Company Completes Bitcoin Transaction for Salvadoran Coffee Purchase
Compass Coffee, a coffee company based in the United States, has successfully purchased a batch of Salvadoran coffee using bitcoin, according to the Salvadoran Ministry of Foreign Affairs. The transaction was conducted without the need for intermediaries, and the payment was received by the Salvadoran counterpart, Jorge Cruz, in less than 10 minutes.
This development highlights the growing appreciation for bitcoin’s advantages in settling cross-border payments in El Salvador. By using bitcoin, Compass Coffee was able to purchase Salvadoran coffee at fair prices, bypassing third-party intermediaries. Salvadoran Ambassador to the U.S., Milena Mayorga, emphasized that all companies in El Salvador could utilize bitcoin for similar settlements.
Jorge Cruz, a Salvadoran coffee producer, commended the transaction, stating that the price achieved was significantly higher than the one quoted in the U.S. markets, benefiting the producers. The settlement process involved sending a test batch to assess the coffee quality and approve the proposed prices before finalizing the transaction.
The Ministry of Foreign Affairs had been in talks with Compass Coffee throughout 2022 to facilitate the purchase of Salvadoran coffee in the U.S. market, fostering connections between producers and buyers. Chas Newman, COO of Compass Coffee, praised the role of the Salvadoran Embassy in enabling this exchange and expressed that the company would also allow coffee buyers to send tips directly to the producers’ bitcoin wallets.
Overall, this successful bitcoin transaction for the purchase of Salvadoran coffee signifies a significant step forward in the use of cryptocurrency for commodity settlements, highlighting the potential benefits of bypassing intermediaries and achieving fair prices for producers.