Brazilians to invest in crypto through MercadoLibre, LatAm’s online store giant

Latin America’s largest e-commerce platform, MercadoLibre, will allow its Brazilian customers to buy, sell and hold cryptos using MercadoPago’s digital wallet. The company’s revenue from digital transactions has grown during the pandemic, and it is now looking to broaden its horizons of “financial inclusion.”

Earlier in the year, the company reported that 60% of its total value came from MercadoPago, its financial tech arm that became a widely used payment method in many Latin American countries during the pandemic.

Brazil and MercadoLibre have long been interested in cryptocurrencies, especially Bitcoin. Now the company is deciding to act on the potential growth it sees in the crypto market by allowing its Brazilian users to invest in it.

However, at this time, customers will not be able to pay for products offered by MercadoLibre using cryptocurrencies. A “world-class custodian” has been announced, but its identity has not been clarified.

Related reading | Latin America’s Largest Online Marketplace MercadoLibre Disclosed Its Bitcoin Holdings

MercadoPago Vice President Tulio Oliveira said during a Bloomberg interview: “We took the time to study and learn before deciding to get into crypto… It has transformational potential ahead and opens up a whole new path for us.” They have long been compared to other online payment services like PayPal and Venmo and these new efforts match that comparison.

The company operates in 18 Latin American countries, with Mexico, Argentina and Brazil leading their net revenues. They aim to expand the inclusion of crypto elsewhere on the continent, although further studies on legal requirements and restrictions are needed.

Latin America prefers MercadoPago

MercaLibre recorded strong year-over-year growth in its third quarter report. Their net income rose 73% to $ 1.9 billion, led by Brazil, which alone generated more than $ 1 million. The entire ecosystem has reached 78.7 million unique active users.

They also reported a 59% year-over-year increase in the total volume of payments through MercadoPago on a currency neutral basis, “having almost passed $ 20.9 billion.” The quarter totaled 865.7 million transactions, an increase of 54.7% compared to 2020.

MercadoLibre CFO Pedro Arnt commented on the press release:

Thanks to what we believe to be these lasting contributions to financial inclusion and the democratization of commerce through an improved experience for our users, our volume growth rates continue to show a solid path over the long term. … In addition, we are seeing a sequential improvement in our engagement and satisfaction with commercial and fintech services,

Brazilians are already choosing crypto

By 2021, residents of Brazil had purchased more than $ 4 billion worth of cryptocurrency as of October, the country’s central bank said. As the country’s instability worries its citizens, many are opting for cryptocurrencies as a store of value, leaving behind the days of storing money.

Brazilian cryptocurrency users prefer to buy Bitcoin with 77% volume in all crypto trades traded by CoinPayments, according to a CoinPayments survey.

Earlier this year, when MercadoLibre’s treasury bought $ 7.8 million in bitcoin to disclose it in their “indefinite-lived intangibles.”

At the time, company co-founder Marcos Galperin told Bloomberg: “Crypto is going to be a major development… People are trying to hold value and some of the cryptocurrencies will hold value by definition. because they cannot be printed or devalued. “Galperin’s take on the potential of the digital coin seems to match the reality of Brazilians today.

Related reading | Brazilian lawmaker proposes integration of crypto payment option for workers

Total Crypto Market Cap at $ 2.5 Trillion in Daily Chart | Source: TradingView.com


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