Mercado Libre Debuts MELI Dollar Stablecoin for Brazil Users

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As a seasoned analyst with extensive experience in the financial sector, particularly in emerging markets like Latin America, I find Mercado Pago’s introduction of MELI Dollar as a strategic move to address economic volatility and offer a stable financial instrument to its users.

In simple terms, Mercado Pago – a digital banking arm of Mercado Libre – has launched a new type of digital currency called MELI Dollar in Brazil. This is essentially a U.S dollar-backed stablecoin, designed to provide users with a steady and dependable financial tool, even during periods of economic instability.

Mercado Pago Debuts MELI Dollar Stablecoin

As a forward-thinking crypto investor, I’m thrilled about the recent introduction of MELI Dollar, a stablecoin now available in the Brazilian market. This innovative digital currency is directly pegged to the US Dollar, offering me a more stable monetary option during economic ups and downs.

The company announced that users in Brazil can buy and sell the Meli Dollar via the Mercado Pago app without any fees, using their Brazilian real balances. This digital coin aims to provide a financial solution, particularly beneficial in areas susceptible to currency fluctuations.

Via Ripio, the leading cryptocurrency platform in Latin America, MercadoPago maintains the consistency of the MercadoDólar. Ripio functions as the intermediary for transactions conducted via the Mercado Pago app, ensuring seamless and secure transaction completion for customers. The stablecoin is issued by Meli Uruguay SRL, a subsidiary of Mercado Libre, which means its value remains constant and it’s tied to the US dollar.

Mercado Libre’s Continued Crypto Innovations

Over the last few years, Mercado Libre has gradually increased its involvement within the digital currency sector. Some of their additional projects involve introducing Mercado Coin in 2022, a cryptocurrency for transactions on their platform and earning rewards in cashback.

Furthermore, Mercado Libre has adopted Paxos’ blockchain technology within Mercado Pago. This integration now enables Brazilian users to transact with Bitcoin (BTC), Ethereum (ETH), and the Paxos-backed stablecoin, USDP.

According to André Chaves, Senior Vice President at Mercado Pago, the objective of the company is to broaden access to the world of cryptocurrencies and stimulate innovation within the financial sector. This aligns with Mercado Libre’s broader goal of providing users in the region with a wider range of financial services, enhancing their ability to manage their money securely.

Stablecoin Market Growth

The arrival of the Meli Dollar comes at an opportune moment, given the persistent growth in the stablecoin sector. In a span of just one week, from August 9 to August 20, the total value of stablecoins surged by approximately $2.21 billion, with most of this increase attributed to Tether, which boosted its supply by around $1.26 billion. Presently, the cumulative market capitalization of stablecoins stands at roughly $168.42 billion, with Tether accounting for a significant 69.4% of the market share.

In addition to Latin America, Tether has also announced intentions to introduce a fresh stablecoin tied to the United Arab Emirates Dirham (AED). This move aligns with Tether’s global growth strategy, focusing especially on expanding its presence within the Middle Eastern region.

As a forward-thinking crypto investor, I’m excited about the upcoming stablecoin that promises stability thanks to its backing by liquid reserves based in the UAE. This backing is expected to not only ensure its stability but also earn the trust of regional users, making it a reliable choice for investment and daily transactions.

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2024-08-22 01:02