- Mercado Libre launches its own stablecoin, Meli Dollar, initially available in Brazil.
- The stablecoin aims to protect users’ purchasing power amid economic volatility.
On August 21, 2024, Mercado Libre, the e-commerce giant in Latin America, unveiled its very own stablecoin, Meli Dollar. This strategic move, developed in collaboration with the Argentine exchange Ripio, aims to provide Brazilian users with a stable digital currency that is pegged to the US dollar, offering a safeguard against economic fluctuations.
Meli Dollar represents Mercado Libre’s latest venture into the cryptocurrency space, which the company has been actively exploring for several years. The stablecoin is designed to maintain parity with the US dollar, thus offering a reliable option for users who wish to protect their purchasing power amidst the volatility that characterizes many Latin American economies.
Initially, Meli Dollar will be accessible through Mercado Libre’s Brazilian platform, known locally as “Mercado Livre.” Users in Brazil can purchase this stablecoin using the local currency, the Brazilian Real, through the Mercado Pago app, which is Mercado Libre’s payment processing arm. In a bid to make the adoption of Meli Dollar seamless and cost-effective, Mercado Pago has announced that it will not charge any transaction fees for buying and selling the stablecoin during its initial phase.
André Chaves, Director of Mercado Pago in Brazil, emphasized the significance of this launch, describing Meli Dollar as a more inclusive financial solution that aligns with Mercado Pago’s mission to scale financial products and services to a broad audience. This aligns with Mercado Libre’s broader strategy to integrate more digital financial products into its ecosystem, making them accessible to users across different economic backgrounds.
Sebastián Serrano, CEO and Co-Founder of Ripio, expressed his excitement about collaborating on this project, highlighting the stablecoin’s potential to provide a financial buffer for Brazilian users. Given the persistent economic challenges in Brazil, particularly the devaluation of the Real against the US dollar, Meli Dollar is poised to serve as a critical tool for those looking to preserve their wealth.
The launch of Meli Dollar marks another significant step for Mercado Libre in its ongoing expansion into the world of digital assets. Since 2021, the company has held 412 Bitcoin (BTC) in its treasury as a reserve asset, showcasing its early commitment to cryptocurrencies. Moreover, in 2022, Mercado Libre introduced Mercado Coin, a token on the Ethereum network, which was also targeted at the Brazilian market.
While the network on which Meli Dollar is built has not yet been disclosed, the introduction of this stablecoin reaffirms Mercado Libre’s growing influence in the crypto space and its dedication to offering innovative financial solutions tailored to the needs of its diverse user base.