On August 18, MercadoLibre Inc, a multinational e-commerce company based in Latin America, announced the creation of a new cryptocurrency called MercadoCoin, which will be launched with its loyalty program.

According to Reuters, the cryptocurrency will run on the Ethereum network as an ERC-20 digital token at a price of $0.10 per coin.

The new digital currency will be used primarily for cashback and purchases within the MercadoLibre platform.

The developer team also hinted at the opening of the coin to the secondary market at some point, but did not explain the idea in detail, as the report stated as follows:

The MercadoLibre cryptocurrency will be initially valued at $0.10 per coin before being open to market volatility.

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MercadoCoin will be available to 80 million accounts:

As of August 18, MercadoCoin will be available to more than 500,000 users in Brazil.

The team expects to have it available to at least 80 million customers by the end of the month.

At the moment, the company has no plans to launch in other geographies, as it would be difficult to comply with all the various regulatory procedures needed to operate in other countries.

Markus Galperin, CEO and founder of MercadoLibre, said on his official Twitter account:

This new initiative will strengthen the company’s loyalty program and help democratize and financial inclusion in Latin America.

“Mercadoliber” is moving forward in the cryptocurrency market:

MercadoLibre entered the crypto world last year when it launched a wallet to allow Brazilian users to buy and sell cryptocurrencies such as Bitcoin, Ethereum and Tether (USDT).

Earlier this week, Osvaldo Jimenez, CEO of Mercado Pago, told Mercado Pago that they will expand the service to the entire region allowing all users to store, sell or buy cryptocurrencies without the need for third-party banks, exchanges or brokers. .

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According to Jimenas, the use of cryptocurrencies through MercadoPago will have a tangible impact in the region, as many people do not deal with banks or primarily use them to withdraw cash, so this is an investment opportunity for those who are looking for an alternative to fiat money.

Besides MercadoCoin and a cryptocurrency wallet, Mercadolibre has also invested in Bitcoin, is a strategic investor in Paxos, one of the largest cryptocurrency platforms in Brazil, and was a member of the dissolved Libra Association.

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