SAO PAULO / Brazil, 29 November 2025: The São Paulo state government in Brazil is preparing to launch a blockchain-based microloan programme aimed at improving credit access for small and remote farmers.
Developed in partnership with Tanssi, a fintech firm specialising in blockchain infrastructure, the initiative will offer loans of up to R$15,000 (approximately $2,800). The programme is scheduled to take effect next month and is expected to strengthen financial support mechanisms for rural producers across the state.
Unlike traditional lending systems, the new programme relies on a private blockchain designed by Tanssi, which operates entirely in the backend. The technology ensures predictable and stable transaction costs, a factor the government considers essential for maintaining transparency and managing public funds. Unlike public blockchains such as Ethereum or Solana, which can experience congestion and fluctuating fees, the Tanssi network provides a closed and controlled environment.
According to Luis Dal Porto, Tanssi’s Director of Business Development, the decision to adopt a private blockchain was driven by the need for reliability when handling taxpayer-funded schemes. Public blockchain networks, he said, often face unstable transaction fees and occasional downtime, which could compromise the consistency required for disbursing microloans. A fixed and predictable cost structure, he noted, would allow the government to ensure efficient use of resources.
Farmers will be able to access the loans through a mobile application, while physical payment terminals will be made available in participating regions. The blockchain system will also help restrict fund usage to approved purposes, reducing the risk of misuse. A similar model was tested earlier in the municipality of Santo Antônio da Alegria, where a closed token system was used to distribute welfare benefits, preventing diversion of funds to non-essential activities.
The upcoming microloan programme forms part of Brazil’s broader push to support small-scale agriculture and expand digital financial infrastructure. Although the rollout of a central bank digital currency has been delayed, municipal-level digital projects are expected to progress in parallel. The São Paulo initiative marks a notable step toward leveraging blockchain technology in public-sector financial services, with an emphasis on stability, security, and streamlined access to credit for farmers.
Image credit: cryptonewsland.com
