Yesterday, the e-commerce multinational MercadoLibre announced the creation of a new cryptocurrency called MercadoCoinwhich will be implemented in its loyalty program. According to Reuters, the cryptocurrency will work on the network Ethereum as a token ERC-20 priced at $0.10 each.
Launch of MercadoCoin
Mainly used for cashback and in-platform purchases MercadoLibre. The dev team also hinted at opening the token to the secondary market at some point, but didn’t elaborate on the idea:
“The cryptocurrency of MercadoLibre will initially be valued at $0.10 each before being opened to market fluctuations.”
Indeed, cryptocurrency is already available for more than 500,000 users in Brazil since launch day. However, the team plans to make it available to at least 80 million customers by the end of the month.
Currently, the company does not plan to expand into other regionsas it would be difficult to comply with all the different regulatory procedures required to operate in other countries. This is of the utmost importance, given the difference in policy towards crypto in Latin America. Countries like El Salvador, Brazil, and Venezuela are more supportive of cryptocurrencies, but others like Bolivia, Ecuador, or Chile take the opposite stance.
Marcos GalperinCEO and Founder of MercadoLibre, has said via his official Twitter account that this new initiative would boost the company’s loyalty program and help “democratize financial inclusion in Latin America.””
Read: Crypto.com and DataMesh team up to enable crypto payments in Australia.
Mercadolibre strengthen its presence in the market for cryptocurrencies
As a reminder, MercadoLibre entered the world of cryptocurrencies in 2021 by launching a wallet that allows Brazilian users to buy and sell cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH) and Tether (USDT).
However, more early this week, the CEO of Mercado PagoOsvaldo Gimenez, said he would extend the service to the entire region, allowing all users to store, sell and sell without the need for banks, exchanges or third-party brokers or to buy cryptocurrencies.
Jimenez said: “We are going to expand in the Region the ability to buy, sell and have cryptocurrencies in your account. It works with Bitcoin,Ethereum and a stable currency that reflects the value of the dollar.”
According to Gimenez, the use of cryptocurrencies through MercadoPago will have a significant impact in the Region, as many people are unbanked or use them primarily to withdraw cash, so this is an “investment opportunity” for those looking for an alternative to currency fiduciary.
See more: Tether hires new European auditor to perform monthly proofs of USDT reserves.