Mercado Libre announced the launch of its cryptocurrency which will be called Mercado Coin and will be available only in Brazil, for the time being. Although this first launch will be focused on the Brazilian market, it is planned to expand to other countries.
Users of LATAM’s largest e-commerce platform will get Mercado Coins as cashback when buying products on the marketplace. The idea is to give small rewards to Mercado Libre users when they use the platform. They will receive Mercado Coins for interacting with Mercado Pago, for using their delivery service, etc.
The cryptocurrency will be an ERC-20 Ethereum token, which can be used for new purchases or to trade on Mercado Pago. As confirmed by Mercado Libre, you can also buy or sell local currency directly from the Mercado Pago app. The Argentine exchange Ripio is the custodian before the blockchain of the purchase and sale operations of Mercado Coin.
Mercado Libre’s first step into the crypto world took place in May 2021, when it launched its crypto section, which focused on properties that accept cryptocurrencies as a means of payment. In this section within the platform, you can find houses, apartments, offices, and lands. This decision of the brand occurred during the boom of cryptocurrencies and their consolidation as a transactional currency, in the context where Real Estate began to explore the alternatives of cryptocurrencies and take advantage of speed, traceability, and security.
Mercado Coin will not be listed on exchanges, the cryptographic token can only be obtained and used within the Mercado Libre ecosystem. However, the company clarified in a statement that the new crypto “is designed to be used virtually and its value can rise or fall based on demand.”
At launch, Mercado Coin will be worth 10 cents in local currency, with a variable price that will be determined by the market’s supply and demand rules.Marcos Galperin, founder, and CEO of MercadoLibre confirmed that the launch of this cryptocurrency is a strategy to boost its loyalty program.
Undoubtedly, this is good news for the entire crypto industry, one more example of the trust and strength of the ecosystem that is getting bigger and bigger.