- Ignacio Estivariz reports millions have adopted Meli Dólar through loyalty programs or direct purchase.
- Users value Meli Dólar for purchases and savings, appreciating its dollar-based stability and commission-free transactions.
In 2024, the launch of Meli Dólar by Mercado Libre marked a significant milestone in the Latin American cryptocurrency industry. This stablecoin, pegged to the US dollar, not only serves within the company’s loyalty program in countries like Brazil and Mexico but also offers users exposure to a more stable currency like the US dollar.
Ignacio Estivariz, VP of Fintech Services at Mercado Libre and based in Brazil, shared insights with Forbes following several weeks of Meli Dólar operations. He noted that millions have already received Meli Dólar either through loyalty program benefits or direct purchases. This early adoption highlights its dual appeal as both a loyalty perk and a straightforward financial asset.
First Impressions of Meli Dólar Operations
During the initial weeks, Mercado Libre observed user engagement. Users appreciate the cashback options, evident from surveys, and actively utilize the cryptocurrency for purchases, savings, or cash redemptions. Estivariz pointed out:
“Many are purchasing Meli Dólar to access a dollar-based crypto asset that they can manage within their Mercado Pago accounts.”
Beyond Loyalty: Meli Dólar’s Broader Appeal
The appeal of Meli Dólar extends beyond the loyalty program.
“It’s part of the program which adds value, but fundamentally, it’s a two-click gateway to a dollar-valued asset without any commission on purchases or sales,” Estivariz explained.
This approach aligns with Mercado Libre’s mission to democratize financial services, allowing purchases of Meli Dólar from as low as one real.
Goals and Future Prospects
The overarching goal is to enhance user benefits on Mercado Libre’s platforms. This includes earning Meli Dólar through cashback on platform use or credit card payments, both on and off Mercado Libre. The synergy created by these transactions encourages more frequent platform use and fosters a cycle of earning and spending within the ecosystem.
Competitive Edge in the Stablecoin Market
While other stablecoins like USDT and USDC exist, Meli Dólar’s affiliation with a well-known brand like MercadoLibre provides a strategic advantage, particularly in familiar markets. “The Mercado Libre brand sponsorship makes it more accessible for people to adopt it,” Estivariz added, noting Brazil’s rapid adoption of new technologies and its significant cryptocurrency market size in Latin America.
Regulatory Environment and Expansion Plans
Mercado Libre maintains a close relationship with Brazil’s Central Bank, known for its proactive stance in the fintech sector. This relationship ensures compliance and fosters an innovative approach to financial products.
While currently focused on Brazil and Mexico, Mercado Libre tailors its strategy to each country’s specific needs, with no immediate plans to expand Meli Dólar beyond these markets.
