Mercado Pago, the financial arm of Mercado Livre, recently launched a new cryptocurrency called Meli Dólar. The cryptocurrency, classified as a “stablecoin,” is pegged to the value of the US dollar, which provides greater stability compared to other digital currencies that are known for their sharp fluctuations.
This feature makes Meli Dólar a safer option for investors looking to protect themselves from the volatility of the cryptocurrency market.
At this initial stage, Mercado Pago customers can buy and sell Meli Dólar directly through the digital bank's app, using their balance in reais. The company highlighted that these transactions will not be charged, that is, there will be no intermediation fees for buying and selling the cryptocurrency.
This strategy could attract a large number of users interested in experiencing the world of cryptocurrencies without the additional costs that usually accompany such transactions.
Is it safe to use a new cryptocurrency from Mercado Pago?
Ripio, one of the main cryptocurrency platforms in Latin America, was chosen to act as a market maker and exchange in operations carried out through the Mercado Pago app.
This partnership is significant as Ripio already has extensive experience and presence in the crypto market, offering an additional layer of security and trust for users who choose to trade Meli Dollar.
Another relevant point about the launch of Meli Dólar is its issuance, which will be carried out by Meli Uruguay SRL, a subsidiary of the Mercado Livre group.
The choice to issue through a group company in Uruguay may be related to regulatory and market issues, as the country has a more favorable environment for the development and operation of digital assets.
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Recent tradition in the area
Mercado Pago, which already offers crypto products in its portfolio, such as bitcoin and ether, is expanding its range of digital financial services with the inclusion of Meli Dólar.
This expansion in the digital bank's crypto portfolio is part of a broader strategy by Mercado Libre to consolidate its presence in the cryptocurrency market in Latin America. In 2022, the company also launched Mercado Coin, a cryptocurrency that was integrated into its loyalty program, allowing users to accumulate and exchange loyalty points for this digital currency.
The arrival of Meli Dólar to the market represents another step in the integration of cryptocurrencies into the daily lives of Latin American consumers.
Stablecoins offer an affordable way to gain exposure to the dollar without the complexities and risks involved in traditional currency exchanges or other volatile digital assets.
This movement reflects the growing demand for more sophisticated and diversified financial products in the region, where inflation and economic instability are constant challenges.
More about Mercado Pago's new features; find out before taking action
Furthermore, Mercado Pago's initiative may encourage other fintechs to explore the development and offering of cryptocurrencies pegged to fiat currencies, especially in emerging markets where trust in local currencies may be low.
With Meli Dólar, users have the opportunity to protect their assets against currency devaluation and, at the same time, benefit from the liquidity and accessibility provided by a stable cryptocurrency.
However, it is important for users to be aware of the risks involved in using cryptocurrencies, even those classified as stablecoins. Although Meli Dólar aims to maintain parity with the US dollar, external factors such as changes in regulations or unexpected variations in demand can impact its value and usability.
Attention: this news only presents news about the Mercado Pago app, we do not encourage any type of purchase, we only inform about the launches.
