Kyrgyzstan intends to use blockchain in the agricultural sector

The Ministry of Agriculture of Kyrgyzstan held a presentation on Thursday on blockchain and the use of this technology to optimize the supply chain in the agricultural sector, according to the ministry's official website.

“The Ministry of Agriculture, Food Industry and Land Reclamation of Kyrgyzstan is implementing a number of projects to improve food safety. Today it is necessary to create a national food safety system that will use blockchain technology,” said State Secretary of the Ministry Maksatbek Tashbolotov in his speech.

Central Asia International representative Sun Xiaodong noted that the use of distributed databases in the blockchain network simplifies reporting and the approval process, and benefits all parties involved. Central Asia International is the initiator and technical director of the implementation of blockchain technology in the agricultural sector.

Until now, the approval process required the maintenance of detailed paper documents by different contractors. Blockchain will allow parties to agree on the terms of a transaction and sign documents, while reducing the number of intermediaries and paperwork. This data exchange system makes it possible to structure supply chains, bringing together carriers, buyers, warehouse operators and other parties. This is especially important for foods with a short shelf life. Several studies have already shown that the implementation of blockchain in the agro-industrial sector can help farmers overcome many problems. The system simplifies the sale of products and reduces the number of intermediaries in the chain.

To achieve the desired result, the same blockchain network must include all participants in the supply chain. Thus, farmers, traders, banks, ports, logistics providers and all other stakeholders must use one blockchain interface.

In April this year, a report prepared by the law firm John Tiner&Partners noted that Kyrgyzstan has a cryptocurrency- and blockchain-friendly legal system that encourages the development of DLT projects.