Mercado Libre has started accepting payments in cryptocurrencies. This could boost mass crypto adoption in the continent.
Mercado Libre is one of the most prominent online market places in South America. The firm extends operations in Columbia, Argentina, Mexico, Chile, and more. The retailer is valued at $81 billion, making it the second-largest company in South America.
The company has announced the launch of a real estate sector that will specifically use cryptocurrencies. However, Mercado Libre only acts as an intermediary and does not directly settle transactions. The sectors that will benefit from this move include land, commercial real estate, houses, and condos situated in Buenos Aires, Cordoba, and Santa Fe.
Enhancing crypto adoption in South America
The announcement by Mercado Libre has not performed to expectations. Although the real estate market in South America is quite huge, only 300 real estate firms participated in a webinar provided by Mercado Libre. The webinar was aimed at expounding cryptocurrencies and the impact they had on the real estate sector.
However, only 90 real estate companies have listed their offers on the site in cryptocurrencies. Most firms are still listing in US dollars. However, this is expected to change as agents and buyers become more interested in crypto and the benefits this will have in enhancing the transaction process on the firm’s marketplace.
The commercial manager for the real estate sector for Mercado Libre, Juan Carretero, also spoke of the development noting that as crypto adoption increases in the country, it will be added as a payment option filter as all others approved on the platform.
Crypto adoption for countries dealing with inflation
South American countries are constantly being affected by inflation. Argentina has been the worst hit in recent months, and its citizens are not looking into using cryptocurrencies as a store of value. This comes after the gross domestic products for the firm reduced by 10% last year as the inflation rate surged by 42.6%.
This move by the citizens of Argentina is expected to ripple across South America. More countries whose citizens are grappling with inflation will look for a better platform to hold their money to not lose value.
The move by Mercado Libre is expected to cause a significant boost for crypto in South America as these assets become integrated into one of the most influential digital payments and marketplaces. Extending this option to the real estate sector is seen as a way of testing consumer demand for crypto.
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