The South-American e-commerce giant, MercadoLibre Inc, recently announced the development of MercadoCoin. This new cryptocurrency is set to be implemented in Brazil as a part of MercadoLibre’s loyalty program. In a news conference, representatives of the e-commerce platform remarked that customers who buy products on MercadoLibre will earn MercadoCoins as cashback.
As competition in Brazil’s e-commerce grows the move comes. Sea Ltd.’s Shopee both reported a 270% increase in revenue there in the second quarter. China’s AliExpress is also gaining popularity in the region.
Details about MercadoCoin
The cryptocurrency issued by MercadoLibre will have a fixed beginning value of $0.10 before being subject to market fluctuations. MercadoLibre expects to issue MercadoCoins to some 500,000 clients in Brazil in the coming week. The company expects to expand its client base to 80 million people by the end of this month.
Validity of MercadoCoin
As of now, the company is not sure whether MercadoCoin will be introduced to other Latin American countries other than Brazil. The fact that the digital currency would only be exchanged on MercadoPago, for the time being, was also underlined by company officials.
MercadoLibre’s introduction of a new cryptocurrency comes after the crypto industry witnessed great losses. Companies like Voyager Digital and Celsius collapsed, leaving a void in the market for new cryptocurrencies. Fernando Yunes, the country lead of MercadoLibre, remarked that the e-commerce platform was more focused on long-term opportunities instead of making temporary market movements or gimmicks. The use and popularity of MercadoCoin can be assessed in the coming months.