Mercadolibre, one of Latin America’s largest online merchants, has begun testing cryptocurrency trading services with a small number of consumers and aims to extend the test in the coming weeks.
Mercadopago, the platform’s native payment mechanism, will enable these clients to immediately acquire, hold, and trade bitcoins. The trial program will begin in Brazil and may expand to other nations in the future.
Mercadolibre Expands Its Cryptocurrency Offerings
Mercadolibre, the largest firm in Latin America, has begun offering bitcoin services on its website. Mercadopago users will now be able to buy, sell, and keep cryptocurrencies through the Mercadolibre platform. This is a natural progression for the firm, which functions as a conduit between businesses selling goods and services on the platform and the users who consume them.
The service was discreetly launched earlier this month to a small number of clients in Brazil, and it is likely to continue growing to additional users in the coming weeks. Mercadolibre is considering expanding this test into more markets in the future, but nothing has been disclosed. Tulio Oliveira, a Mercadopago vice president, commented on the company’s decision to include cryptocurrency into its business model:
We took the time to research and educate ourselves before opting to enter the crypto world. This has the potential to be transformative and opens up a new route for us.
Cryptocurrency and Its Constraints
The corporation has been interested in cryptocurrency for a long period of time and has already invested in it. Mercadolibre purchased $7.8 million in bitcoin (BTC) during the first quarter of this year, which is disclosed in May when it released its first-quarter financial results. Marcos Galperin, the company’s co-founder, and CEO, has been an outspoken advocate for cryptocurrencies as a viable alternative to conventional investing, having personally invested in firms like Ripio.
Galperin says the following about cryptocurrencies: Bitcoin and other cryptocurrencies are here to stay. They play a critical function, not so much as a medium of exchange as a store of value.
Perhaps, in keeping with Galperin’s logic, customers of Mercadolibre will not be able to quickly buy items and pay for services using cryptocurrency. However, if the corporation wants to replicate Paypal, the next step would be to accept bitcoins as a means of payment for platform transactions.
If all goes well during this trial run, Mercadolibre’s activities may convince other large enterprises in the region to consider incorporating cryptocurrency into their business models as well.
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