A mass adoption hinges over South America as Mercado Libre (MELI) assents to crypto-based payments for real estate. Recently, MELI, a popular marketplace, unveiled a real estate section devoted to digital currencies. However, MELI will not conclude transactions for the property directly but merely legitimize this type as a payment method.
The retailer with a substantial market cap of roughly $81 billion is available in 18 different countries wherein Argentina, Mexico, and Brazil, MELI holds the three biggest markets. MELI also owns a logistics company Mercado Envios that delivers warehousing, shipping services, and fulfillment. Not only that, but the retailer also owns a digital payment system by the name Mercado Pago that allows users to perform offline or online transactions.
The offering by the retailer, at the moment, includes condos, land, commercial real estate, and vacant lots situated in Santa Fe, Cordoba, and Buenos Aires.
A new technique for digital currencies in South America
A webinar by Mercado Libre explained the basic technicalities of digital currencies and their future influence on the real estate sector. The immediate effect of the news might have not been the most promising one as only 90 offers were made in the newly launched section. Meantime, the listing prices are still represented in US dollars.
Identically, the retailer’s platform does not complete transactions for properties to pay with Argentine pesos, Brazilian reais, or US dollar. Hence after selecting the desired property buyer can contact the agent and request to pay in cryptocurrency for the finalized amount. Nevertheless, analysts may have been unable to foresee the prospect of Ether, Tether, and Bitcoin to deliver a way of exchange.
Juan Manuel of Mercado Libre concurred as digital currencies become mainstream, digital currencies will not be featured in a different section but would be another option for payment like many other payment options.
Following Statista data, Mercado Libre totals 25.4% of total online trades in South America. The retailer expects to reach a staggering $25 billion this year, consequently netting 5% from $1.25 billion of the volume generated.
High inflation countries could opt for cryptocurrency
Argentina was plagued with a massive 42.6% inflation that could end up adopting cryptocurrency much earlier than many others as Argentinian nationalists were limited to $200 of overseas currency purchases. Now digital currencies have emerged as a means to allow the citizen an efficient way of storing their wealth.
Even though it will still take some time for digital currencies to hit the mainstream in South America, the distinct real estate section offers a test run for customer demand.
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