- MercadoLibre, the e-commerce giant has come up with MercadoCoin, its own cryptocurrency.
- The digital currency is based on the ERC-20 token standard.
- As of now, the currency could be used only in Brazil.
On Thursday, MercadoLibre Inc (MELI.O) announced creating MercadoCoin, a new cryptocurrency meant to be used in Brazil.
Hoy lanzamos Mercado Coin en Brasil, dándole mayor impulso a nuestro programa de lealtad y dando otro paso para democratizar la inclusión financiera en América Latina.— Marcos Galperin (@marcos_galperin) August 18, 2022
MercadoLibre to create cryptocurrency as part of loyalty program https://t.co/7kanuk6GLh
According to the company, clients will receive MercadoCoins in the form of cashback when they purchase products on the platform.
The currency will be used to buy or trade on MercadoPago, MercadoLibre’s financial services unit.
The reason behind the move is the rapid increase in Brazil’s e-commerce sector. Reportedly, Sea Ltd’s (SE.N) Shopee has experienced a boost of 270% in its revenue during the second quarter.
Considering the not-so-happy state of crypto markets, Fernando Yunes, MercadoLibre’s country lead, shared that they are focused on long term possibilities.
As of now, MercadoLibre’s cryptocurrency will have a value of $0.10 per piece.
The currency will be accessible to 500,000 clients and has possibilities of reaching the company’s 80 million-people clientele in Brazil towards August end.
At the moment, it is not known as to when MercadoCoin will be introduced in other Latin American nations. Also, the currency won’t be traded on any other exchanges besides MercadoPago currently.
MercadoLibre entered the cryptocurrency space last year through the launch of a wallet that enabled users in Brazil to purchase & sell cryptocurrencies like Ethereum, Bitcoin and Tether.