MercadoLibre To Create Cryptocurrency As Part Of Loyalty Program

MercadoLibre said that clients will earn MercadoCoins as cashback when buying products on the e-commerce platform.

South American e-commerce giant MercadoLibre Inc on Thursday announced the creation of a new cryptocurrency called MercadoCoin, which will be implemented in Brazil as part of its loyalty program.

MercadoLibre told a news conference that clients will earn MercadoCoins as cashback when buying products on the e-commerce platform.

They will then be able to use the digital currency, which follows Ethereum's ERC-20 token standard, for fresh purchases or trade it on the company's financial services unit MercadoPago.

The move comes as competition in Brazil's e-commerce increases, with Sea Ltd's Shopee reporting a 270% revenue jump in the country in the second quarter and China's AliExpress also gaining ground there.