MecardoLibre will launch new crypto soon. The company is one of Latin America’s most prominent e-commerce players, and it announced its crypto on August 18, 2022. The crypto, Mercadocoin, will be Ethereum network-operated, and each coin will cost $0.01. It created the digital coin in collaboration with Ripio, the crypto expert and Argentine fintech that will oversee and work as the exchange in charge of the crypto’s activities done through the eCommerce platform.
Available To A Few Select Members
The crypto will be used in the company’s loyalty program. Hence, it’s only available to a few chosen members of the company’s platform. Additionally, users will mainly use it for purchases and cashback within the eCommerce company’s platform.
The developers also gave clues about making the token available to more people in the region but did not divulge much information. Fernando Yunes, a high-ranking VP in the company, said that there is no set date and going forward, they will launch based on the platform’s growth and the digital coin adoption rate in Brazil. From August 18, over 500k consumers in Brazil can access Mercadocoin. But the developers plan to make it possible for about 80 million users to access it before the month ends.
Adhering To Regulations In Other Countries Is A Challenge
The eCommerce company is not planning to avail the coin to users in other areas because it will be difficult to follow all the regulations imposed in other countries. In Latin America, governments have divergent attitudes towards crypto. Therefore, it makes sense for a company to be cautious before launching its product in a country in the region.
For example, Venezuela, Brazil, and El Salvador are considerably crypto-friendly, but other countries like Chile, Ecuador, and Bolivia have more stringent regulations on cryptos.
The founder and CEO of MercadoLibre, Marcos Galperin, tweeted that this crypto will improve the loyalty program and diversify financial options in Latin America.
Reports say that MercadoLibre ventured into the crypto world in 2021 when it introduced a wallet to enable Brazilian consumers to purchase and sell cryptos like Tether, Ethereum, and BTC. Moreover, Mercado Pago’s CEO, Osvaldo Gimenez, recently announced that they would avail this service to the whole region and let every user purchase, sell, and store cryptos without using brokers, exchanges, and financial institutions.
Investment Opportunity For People In The Region
He added that allowing people to use cryptos through the company’s platform will benefit the area because most people don’t have bank accounts, and those who have usually use them to withdraw money. Therefore, this is a chance to invest for people searching for better fiat money.
Apart from having a crypto wallet and crypto coin, MercadoLibre is also a bitcoin investor and an investor in one of the major crypto exchanges in Brazil called Paxos. It also used to be a member of the Libra Association, which has since stopped operating. MercadoLibre has also invested in credit and payments outside the crypto market.