Home » Economy » MercadoLibre plans to accept Bitcoin and other cryptocurrencies as payment for all products

MercadoLibre plans to accept Bitcoin and other cryptocurrencies as payment for all products

MarketPaid, the fintech arm of the e-commerce giant Free market, has allowed its Brazilian clients to buy, sell and hold Bitcoin (BTC), Ether (ETH) and the stablecoin Paxos (USDP) backed by US dollars. In a statement issued Thursday by the American company Paxos, the blockchain infrastructure platform used by PayPal and Facebook, the partnership between MercadoPago and Paxos will allow users pay for all products sold on the platform using cryptocurrencies.

This news marks one of the largest stablecoin operations within a native non-crypto digital wallet to date. Brazilian users who wish to hold US dollars can do so now for as little as 1 Brazilian real within the MercadoPago application by purchasing USDP. In a Latin America riddled with inflation, stablecoins can provide a safety net against the devaluation of national currencies.

Starting with Brazil, MercadoLibre’s largest market, the collaboration with Paxos plans to “accelerate the democratization of financial services in Latin America.” While MercadoPago hopes to make cryptocurrencies more easily accessible to all Brazilians, Paxos plans to safeguard client assets.

Since MercadoPago is authorized by the central bank of Brazil to act as a payment institution, the general operation and integration of the platforms will be carried out by Paxos, which has opened an office in Brazil and will be in charge of reporting user transactions to regulators, according to Tulio Oliveira, vice president of MercadoPago Brasil.

MercadoLibre has been serving unbanked or underbanked populations since 1999. Now MercadoPago and Paxos are some of the few companies attempting to normalize connectivity and stablecoin use cases. Reserve is another platform used to convert local currencies from Venezuela, Colombia, Argentina and Panama to US dollars through the stablecoin, Reserve (RSV).

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