Mercado Libre, the second largest company in South America, has begun accepting payments in cryptocurrencies. This move could increase the mass use of crypto on the continent.
Mercado Libre is one of the most important online marketplaces in South America. The firm expands its operations in Colombia, Argentina, Mexico, Chile and many more countries. The $ 81 billion retailer is the second largest company in South America.
The company announced the launch of a real estate industry that will specifically use cryptocurrencies. However, Mercado Libre only acts as an intermediary and does not finalize transactions directly. Industries that will benefit from this move include land, commercial real estate, homes and apartments in Buenos Aires, Cordoba and Santa Fe.
Although the real estate market in South America is quite large, only 300 real estate firms attended a webinar hosted by Mercado Libre. The webinar aimed to explain cryptocurrencies and their impact on the real estate industry.
However, 90 real estate companies listed their offers in cryptocurrencies on the site. Most firms still list it 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 improving the transaction process in the firm’s market.
Mercado Libre’s real estate business manager Juan Carretero also spoke of the development, noting that as crypto adoption increases in the country, others will be added as a payment option filter as approved on the platform.
Crypto adoption is important for countries dealing with inflation
South American countries are constantly affected by inflation. Argentina has taken the worst hit in recent months and its citizens are considering using cryptocurrencies as a store of value. This came after the company’s gross domestic product increased by 42.6% last year in the inflation rate.
This move of Argentine citizens is expected to fluctuate in South America. More countries whose citizens grapple with inflation will look for a better platform to keep their money from losing value.
Mercado Libre’s move is expected to result in a significant increase 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 industry is seen as a way to test consumer demand for crypto.