Mercado Libre Launches 'Mercado Coin' for Loyalty Rewards in Brazil

This article comes fromThe Block, original author: Kristin Majcher

Odaily Translator | Nian Yin Si Tang

Summary:

This article comes from

, original author: Kristin Majcher

Odaily Translator | Nian Yin Si Tang

secondary title

Summary:

- Latin American e-commerce company Mercado Libre launched its own cryptocurrency, Mercado Coin.

- Loyalty program members can now purchase cryptocurrencies as rewards on Mercado Libre's marketplace.

- Cryptocurrency exchange Ripio provides technical support for the development of this cryptocurrency based on the Ethereum ERC-20 standard.

Latin American e-commerce company Mercado Libre has launched a cryptocurrency in Brazil as part of its loyalty program, seeking to provide more value and experience to its regular customers.

The company is using a new token called “Mercado Coin” to reward loyalty program members who make purchases through its marketplace. Mercado Coin is developed based on the Ethereum ERC-20 token standard.

"The blockchain technology behind Mercado Coin allows us to provide a secure, open solution," Daniel Rabinovich, Mercado Libre's chief technology officer, said in a statement. "We will continue to monitor the development of cryptocurrencies and blockchain, Because we see great potential for these technologies to simplify operations and empower our customers financially."Mercado Libre, known as Mercado Livre in Brazil, will add a "crypto logo" next to certain products in its Brazilian market, indicating that users can be rewarded with Mercado Coin when purchasing those items. People with Mercado Coins can use them to buy more items in the marketplace, or exchange the cryptocurrency for Brazilian reals using the payment app Mercado Pago.A spokesperson for Latin American cryptocurrency exchange Ripio told The Block that the technology behind the token was developed by Ripio. Ripio is also responsible for providing custody and acting as an exchange for Mercado Pago cryptocurrency transactions.

The spokesperson confirmed that the new cryptocurrency will be gradually rolled out to Mercado Libre’s Brazilian customers, starting with 500,000 users. These cryptocurrencies will start trading at 10 cents. These details were previously reported by media outlets including Reuters and InfoMoney.The launch of this new cryptocurrency builds on Mercado Libre’s digital asset adoption efforts over the past few years. In a press release yesterday, the firm said it “has taken a $30 million cryptocurrency position as a store of value.”As early as April 2021, the Mercado LibreAnnounced to allow its clients to use Bitcoin to purchase some selected properties through real estate agencies。

. The company offers 75 properties for sale by seven agents who accept bitcoin as their only form of payment. These houses, apartments, land, etc. are located in several cities in Argentina such as Buenos Aires, Santa Fe and Córdoba.Thereafter in December 2021, Mercado LibreAnnounced that it is integrating Paxos' blockchain infrastructure