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Russian farmer Mikhail Shlyapnikov uses cryptocurrency in settlement with customers

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Blockchain instead of bills of debt

Mikhail Shlyapnikov, famous for the release of his own “currency”,
kolion, started to use blockchain in agriculture – first in the world.
An ex-banker, 51-year-old Muscovite Shlyapnikov has been living in village
Kolionovo since 2001 at a distance of 100 km from Moscow, has an arboretum
for 300 species of plants. The correspondent of “Ko” found out what for
the entrepreneur needs blockchain.

– How did you get the idea to use blockchain in your household?

– This is a logical development of the idea of local economy,
that we have been building for several years. We rented the land, grow
seedlings on it. In 2014, we had kolions, and since 2010 we have
self-government, in addition, we are helping to extinguish fires,
pick up trash, provide some special offers- environmental, social.
For example, we helped to harvest firewood for the elderly .
Blockchain is a technology that eliminates the interference of the state
and officials, helps to make decisions on human-human level.

-IT specialists and computer geeks are engaged in blockchain. Do such
people live in your village?

– No, we have an ordinary village, it is engaged in agriculture.
Blockchain is much spoken about now. For several months we have been
consulted with various developers of blockchain from China and the USA,
they step by step told us how and what.

– How is it known that your household needs a blockchain?

– I believe that this is one of the conditions for the survival of farming
in Russia. The situation is very serious, it’s impossible to receive money
from banks and the state at low rates on long terms. So we have come
to our money – have released kolions. During six months while kolion
was working, production volumes have increased in several times,
we have reduced costs, attracted new customers. We conducted even a few
serious charity events. Cryptocurrency is similar to our money.

– But a year ago the court forbade you to produce kolions …

– Cash – yes. We decided to carry out non-cash payments using kolion.
It was not forbidden for us. Now kolion is written with a solid mark on
the end. For this blockchain was needed.

– And how does it work?

– We have our traditional customers, mainly physical persons who buy
products in rоubles. But the big problem is that main sales that we have
are within two weeks in the spring and approximately two months in the fall.
The rest of the time is hardworking: in summer – сaring, in winter –
ensuring the safety of the arboretum, in addition, we breed some animals.
In other words, we have money there for two weeks in spring and two months
in autumn, but every month we have to buy fuel and lubricants,
agrochemicals, salary for workers, pay for the light, for the lease
of the land and so forth. That is, there is a big cash gap.
To cope with it, we found out a domestic payment system with our customers.
Customers make an advance payment in roubles, get discounts for that and
this advance payment can stretch on for months or even two or three years.
I will give an example. If someone is building a country house and plans
gardening or landscaping the area, plants will need a few years to grow up.
Within three years, we are payed advance payments, plants grow,
for they can be seen, but as an acquittance or contract some customers
have agreed to take our kolions. The same applies to poultry, eggs,
vegetables, etc. In other words, we take money for future crops,
and in return we give out acquittances – kolions. The amount of emission
and cash kolions, and now non-cash kolions – approximately 10% of our
liquid assets. The margin of safety we have is a very big one.
In other words, five people ordered 10 geese, fox suddenly stabbed
10 geese that happens regularly and we have in our stock – 100 geese.
Even if fox slaughters 90 geese, we will fulfill our obligations anyway.
Kolions allow us to increase production. Thus, the order of 10 Christmas
geese provides incubating of 200 goose eggs. This is the cost price that
such order has. This allows us not to take loans from banks,
not to delay the various payments. Kolion helped us to survive two years
ago, and now because of the cash kolions ban we decided to use bloсkchain.

The group of shareholders and customers has remained the same –
those who ordered plants, geese … And 20-30 people will be added.
In roubles it is 1.5 million – approximately our annual turnover.

One more example. On 25th of December you need a Christmas tree.
In the market a good foreign tree costs about 5,000 roubles.
I have exactly the same one that can be bought for 3,000 roubles.
You give me 2500 rub. today and I will bring this Christmas tree to you on
25th of December. Receiving that money, 100 roubles I will spend
on the Christmas tree, and the remaining 2400 rub. will be spent on
current needs – diesel fuel, etc. Kolion – a receipt that we should have
notary certified, you – pay through the bank in 2500 roubles,
giving the bank a commission. But now I can not release kolions.
We will not make kriptokolion by ourselves, although there was such an idea.
Blockchain allows to make a record of our contract with you without issue
of kolions, the notary and the bank, that is, all of these overheads.
This record all participants will see in the network,
and cheating is excluded.

– And on what blockchain platform do you work?

– On EmerCoin. We have registered 50 shares, gave them a wallet status,
10 of them have already been redeemed. I sell these wallets – for roubles
or for services. We will work in test mode for a month without notaries and
banks.
Recently one person paid for a wallet with a stocking pond.
Pond – my client has made a contribution of 24 000 rubles. This wallet
will be the fact of the transfer of our farm’s share. I am ready to pay
him dividends or to give the goods – in this case carps. Towards the
future my carps will grow up, and payment will be made during the year.
Frequently. But the customer will buy the fish for 100 roubles per 55 kg,
while the market price is 200 roubles. He will receive approximately
100 kg per 24 000 rubles. But if he doesn’t need such amount, he can buy
milk, eggs, plants, potatoes, chicken, quail, pork, and all this will be
halfpriced. With 24 000 roubles fish can be grown up for 100 people,
one person can’t eat such amount. That is, we created with this person
a new production unit, which will feed 100 people. I have cleaned the pond,
concreted it, he paid for some of the work and the purchase of fish fry.
These 100 people also create other productions – apiary, plant feed,
grow up sheep, produce eggs, etc. As a result, 100 people,
50 for now in fact, have both fish and meat, and eggs, and milk,
and vegetables and fruits, and mushrooms, and recreation and tourism.
The annual profitability of the production is 150%. Share transfering
happens in blockchanin using EmerWallet. In the EmerWallet amount
and the right to share are fixed in EmerCoins – cryptocurrency,
which operates the platform.

– As I understand, is it not written your own commitment in the
EmerWallet to the owner of the wallet of the dividends or your products?

– No. This is fixed in kolions. We do this now non-cash,
it looks like a table in Exel, which has access to all the participants
of our household.

– And why don’t you make a record of transactions with your partners
in EmerCoin-blockchain?

– Because EmerCoin is very volatile cryptocurrency. And kolion is hard
currency. If we agree that 10 eggs cost 2 kolions, so they will cost so
in 100 years. This is extremely important for agricultural production, and for any
other too. If today I take the credit in roubles or dollars, I don’t know
how much I’ll pay in a year.

– How did you meet EmerCoin?

– It was few years ago, during the collapse of the rouble,
when people bought up dozens of refrigerators. Kolion was unvolatile
because it is bound to products. Oleg Hovayko (one of the co-founders
of EmerCoin-blockchain, lives in the United States – Note “Co”.) offered
to move our calculations in blockchain. But then courts due kolion started
and I did not find time to familiarize with his proposal.
And after the cash kolion’s ban I returned to this theme in winter,
read everything that I could understand, got in touch with Oleg Hovayko
and other professionals. I changed a few kolions on different
cryptocurrency – Bitcoin, Litecoin,Siberian chervonec. More precisely,
I transfered roubles into dollars, and then in the “crypt”.

– How much do you pay EmerCoin for transaction support?

– Not at all. They paid me for the opening and of storage wallets for
10 years ahead. And they also committed themselves to explain
50 shareholders which buttons to press on the keyboard to make operations
with EmerWallet. How much all these costs I don’t know,
this is a question to Oleg Hovayko.

– Maybe you’ll pay them with the products from your farm?
– Maybe. I made such a proposal. Maybe they will purchase a couple of units
of our farm. But they are not interested in meat, fish and tree,
they are interested in the dynamics of EmerCoin development in Russia.
We are not the first who joined the EmerCoin-blockchain in Russia.

– Let’s return to kolions. A year ago the court has forbidden you to
release them. How have you paid off with the holders of your acquittances?

– Really, it is. And I had only about 200 000 roubles of obligations
if kolions transfer into roubles. If I were to fulfill these commitments,
it would have violated the court’s decision, if I did not fulfill
their obligations, I would have been a swindler. The Court obviously
led me to crime by prohibiting using kolions. We reformatted these
commitments, calling them temporarily “nabiullinki”.
And during the contractual period we have fulfilled all obligations
and there were no complaints. I have no debts, no loans in the bank.
On the contrary, everyone is owe to me and so the state is.
Instead of the state I extinguish the fire, grow trees, clear snow
and debris, prick the wood for the elderly and so on. For 5-6 years
I gave 100,000 oak seedlings for restoration of Podmoskovje for free.

– Are you not afraid that because of the use of EmerWallets and transition
to cashless kolion law enforcement agencies will have questions to you
again?

– It doesn’t bother me. One official asked me in surprise: and do you want
to live in your village well? And I looked at him and said: yes, we want,
can not we? I’m an anarchist, I’m self-important. A blockchain can’t be
banned, it will develop, whether the state wants it or not.

– And how you, a banker and a city dweller have become a farmer and
peasants?
– I have come here, in fact, to die, after breaking my spine and became
ill with cancer. I think I left three months and wanted to fish
and drink vodka … But I was told: why are you sitting? Let’s plant a tree!
Well, I planted. Then two, then dozens, thousands… Thats why I don’t
count more than three months, even with blockchain I have not yet
announced the price of the share and the term of the project …
But I think that it will be no longer than 12 months. And then we’ll make
a further 12 months.

– And will be the public offer on shares administered?

– We will see it in a month. People address, want to buy shares.
But after a month we will define the sum of the unit, as what will
it be – 1000 roubles, 24 000 roubles or 240 000 roubles –
I do not know yet. I’ve taken money for pond stocking, but the fish will
be only in May. And so with everything. Timee is needed.
But at the same time in EmerCoin it’s got that I’m self-sufficient
and fulfil my obligations.

– 50 shareholders – are these Kolionovo inhabitants your friends?

– No, they are from Moscow. I’m rather popular person, I have many friends.
In Kolionovo, sometimes, come up to 200 people, for example,
on the Day of birds. On the planting of trees and firewood –
30-40 people come. Someone give a chainsaw, some books, a someone asked
to help him. There are those who help me with money – also from Moscow.
We even made a program – “If you have no country house.”
People here grow vegetables and fruits for themselves , take meat, milk.
I give the land, equipment. This formed our team.

Reference

Mikhail Shlyapnikov worked in the Central Committee of the CPSU in the
department of currency operations, was a chairman of the board of bank
directors of the “Golden Age”. In 2000 he broke his spine in an accident.
In 2001, he went to the village Kolionovo Yegoryevsky district,
100 km from Moscow, where he built himself a house.
In 2004, he was diagnosed with cancer, but Shlyapnikov is not dead,
contrary to the predictions of doctors, and became a farmer.
In 2014, he released 20,000 kolions. In 2015, Yegoryevsk district court
has made the abolition of use kolionov: in its opinion, kolion is
a cash substitute, which undermines the national currency.

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