Online marketplace MercadoLibre to debut 'MercadoCoin', its proprietary cryptocurrency, in Brazilian market
In a groundbreaking move, Latin American e-commerce giant MercadoLibre has announced the launch of its very own cryptocurrency, MercadoCoin. This new digital asset is set to revolutionise the way transactions are conducted on the platform, starting with 500,000 clients in Brazil from Thursday.
MercadoCoin follows Ethereum's ERC-20 token standard and will have an initial fixed value of $0.10. The cryptocurrency will be available for use within MercadoLibre's loyalty program, allowing customers to earn MercadoCoins as cashback when buying products on the e-commerce platform.
The coins can be used for fresh purchases or traded on MercadoPago, MercadoLibre's financial services unit. This means that users can not only benefit from the convenience of digital currency but also participate in the trading of MercadoCoin within the MercadoPago exchange.
Despite the dramatic slump in the crypto markets, MercadoLibre is focusing on the long-term opportunities in the crypto space. The company has already invested in crypto firms Paxos and 2TM Group earlier this year, with the aim of boosting development and accelerating the use of crypto assets in the region.
The initial rollout of MercadoCoin is limited to 500,000 clients in Brazil, with plans to reach the total 80 million customer base by late August. However, the expansion of MercadoCoin to other Latin American countries besides Brazil is uncertain at this point.
The launch of MercadoCoin marks the first step in MercadoLibre's plan to venture into the world of cryptocurrencies. By offering a digital currency tailored to its platform, MercadoLibre aims to create a more seamless and efficient shopping experience for its users while capitalising on the growing interest in cryptocurrencies.
