The UN has piloted a project in Mongolia that aims to help farmers deliver expensive cashmere wool using the blockchain technology. According to the Forbes report, blockchain technology would help highlighting producers who are following sustainable practices. Mongolia is one of the largest exporters of cashmere wool.
Ethereum’s blockchain technology is being used to trace cashmere.
Canada-based company Convergence.tech is using Ethereum’s blockchain technology to track the production and supply of cashmere wool in three regions of Mongolia. According to the convergence report, using blockchain to trace cashmere would help to uplift the poor and marginalized, help fighting corruption, ensure animal welfare, and would guarantee ethical sourcing. Cashmere is scarce in nature, and its quality and quantity highly depend on climate and geography.
Mongolian farmers welcome this solution.
The cashmere herders in Mongolia already face several problems regarding the production, including income instability and uncertainty, and are often indebted to intermediaries for cash advances. The need for more sustainability and traceability in the sector is also required because of the decreasing quality of cashmere due to climate change, rise in unethical sustainable sourcing, and demands for proof of sustainability.
The farmers of the region have welcomed the decision to use technology to better trace their products. Many governments around the world are using blockchain technology for various use cases that require open markets.