• Mercado Libre’s MercadoCoin is obtainable to 500,000 customers, with an extra 80 million anticipated by month’s finish
  • The token lets customers earn crypto rewards as cashback on purchases and pay for items on Mercado’s e-commerce platform

Latin American e-commerce firm Mercado Libre has launched a token in Brazil, aimed toward producing crypto cashback rewards on purchases, in addition to the flexibility to pay for items on its platform.

Dubbed MercadoCoin, the Ethereum-based token is tradable through the corporate’s digital funds platform, Mercado Pago. The endeavor is a part of its loyalty program, designed to draw and retain clients.

Reuters first reported the information on Thursday, citing a press convention. Blockworks tried to contact Mercado however didn’t instantly obtain a response.

Mercado’s crypto pursuits could be seen as a savvy play on the area’s excessive adoption charges of digital property. Latin America has continued to seize between 8% and 10% of worldwide cryptocurrency exercise, in line with Chainalysis’ analysis, reported in March.

Rising markets face appreciable foreign money devaluation ensuing from excessive charges of inflation, driving locals to buy crypto on P2P platforms in a bid to protect their financial savings.

Whereas crypto valuations have been impacted by the latest market rout spurred on by overleveraged lenders and a swing to bearish sentiment, the nascent asset class’s reputation within the area stays excessive.

The e-commerce large started providing customers entry to bitcoin, ether and Paxos’ stablecoin PAX in December of final yr after it partnered with the crypto service supplier. Mercado additionally bought a stake for an undisclosed sum in crypto change MercadoBitcoin.com.br’s mother or father holding firm 2TM and Paxos as a shareholder in January.

MercadoCoin is predicted to be valued at $0.10 earlier than being floated on the open market, Reuters reported. The crypto is obtainable to 500,000 clients in Brazil, the place it’s anticipated to achieve greater than 80 million folks by the top of the month.

The corporate additionally stated the token will solely be obtainable to Brazilian nationals, with no timeframe given on an enlargement to different Latin American nations. Regardless of utilizing the ERC-20 token customary, buying and selling will probably be restricted to its Mercado Pago platform till additional discover, Reuters reported.

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  • Blockworks

    Senior Reporter, Asia Information Desk

    Sebastian Sinclair is a senior information reporter for Blockworks working in South East Asia. He has expertise overlaying the crypto market in addition to sure developments affecting the trade together with regulation, enterprise and M&As. He at the moment holds no cryptocurrencies.

    Contact Sebastian through e-mail at [email protected]

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