Uruguay to Launch Blockchain for Tracking Medical Cannabis
Uruguayan cannabis company Uruguay Can is preparing to release the world’s first mobile application based on blockchain technology to track the supply chain of medical cannabis. This system will allow consumers to find out where and how the cannabis was grown.
How the System Works
The system will operate on the æternity protocol, which is designed for public, open-source blockchains with smart contract capabilities. Devices connected to a decentralized database will be linked through Internet of Things (IoT) technology, forming a computer network. The program is scheduled to launch in June or July 2021, coinciding with the start of the agricultural season.
Pablo Coirolo, director of æternity Americas, stated that through the app, buyers will be able to access comprehensive information about cannabis products—from planting to packaging. Blockchain technology ensures that recorded information cannot be altered, while IoT enables real-time data transmission from various points in the supply chain. This will increase the safety and transparency of the cannabis business.
Eduardo Blasina, director of Uruguay Can, commented: “Our company will become the first Uruguayan enterprise to guarantee the quality of medical cannabis and allow clients to verify the accuracy of information. This means consumers can make an informed choice in favor of our products.”
Uruguay Focuses on Cannabis Exports
In 2013, Uruguay became the first country in the world to legalize recreational cannabis. Six years later, local company Fotmer Life Sciences completed a test export shipment of 10 kg of medical cannabis to Australia. The company’s management announced plans to send 100 kg of cannabis per month to their Australian partners at Cannabis Doctors Australia.
Last year, Uruguayan cannabis firm Fotmer Life Sciences made the largest legal export shipment of medical cannabis in history, delivering one ton of cannabis to Portugal for $3.2 million (about $3.20 per gram). South American cannabis is much more expensive than African cannabis. For example, Industrial Hemp from Uganda sold 250 kg of cannabis to Israel for 37.5 million shillings (about 3 rubles per gram).
The Uruguayan government does not publish data on cannabis exports, so the total volume of medical cannabis shipped abroad is unknown. However, several companies licensed to produce high-THC products have announced plans to export cannabis to Germany, Brazil, and Canada. In particular, Fotmer plans to export 10 tons of cannabis per year and manufacture medicinal products from the raw material, such as creams, tablets, capsules, and patches.