The fintech arm of the major e-commerce player MercadoLibre, called MercadoPago, has announced that its Brazilian customers will be able to pay in Bitcoin (BTC) among others. In addition, Ethereum (ETH) and the Pax Dollar (USDP) will be added initially. However, the number of supported cryptocurrencies is expected to expand rapidly.
Collaboration with Paxos
Yesterday, United States (US) based Paxos announced this via a statement on their website. Paxos offers a popular blockchain infrastructure platform used by Facebook and Facebook, among others. The new partnership between MercadoPago and Paxos allows users to pay for all products sold on the platform using cryptocurrency. The crypto company also made the announcement via a Tweet on the social media Twitter.
Today marks another huge milestone in #crypto. @mercadopago, the largest payments provider in #LatAm, will offer Brazilian customers the ability to buy/sell/hold $BTC $ETH and the Paxos dollar #stablecoin $USDP #PoweredByPaxos https://t.co/Pfo3ZcAwwk
— Paxos (@PaxosGlobal) Dec 2, 2021
Inflation Latin America
Latin America is currently plagued by inflation. Stablecoins, cryptocurrencies pegged to fiat currencies such as the euro or dollar, may provide a safety net for residents of such areas. Brazilian users who want to hold US dollars can now do so for as little as 1 Brazilian real in the MercadoPago app by purchasing USDP.
MercadoLibre is the first to focus on Brazil, which is also their largest market. Through the partnership, both companies plan to “accelerate the democratization of financial services in Latin America.” While MercadoPago hopes to make crypto significantly more accessible to all Brazilians, Paxos plans to protect the assets of these customers.
In Brazil, MercadoPago is authorized to act as an official payment institution. As a result, the overall operation and integration of the platforms will be done by Paxos. Paxos has now opened an office in the country, where it will handle the reporting of user transactions to the regulators.