Argentina’s Tech Unicorn Mercado Libre Is Backing Facebook’s Crypto Project With $10 Million Investment

  • Mercado Libre is expected to implement Facebook’s digital currency on its e-commerce platform
  • The Buenos Aires-based company has a potential market of over 200 million individuals
  • The Buenos Aires-based tech unicorn Mercado Libre is backing Facebook’s cryptocurrency project. This is according to an executive of the company that shared the information with Cointelegraph Brazil on June 14. Facebook is expected to launch a new blockchain project to the crypto market in the coming days.

Mercado Libre Backs Facebook’s Crypto Project

There are different companies around the world that are already showing their interest in Facebook’s stablecoin project. One of them is the Argentinian unicorn Mercado Libre, the largest marketplace in Latin America.

During a conversation with Cointelegraph Brazil, an executive explained that they are going integrate the virtual currency developed by Facebook into their e-commerce platform as a form of payment. Mercado Libre has a potential market of over 600 million individuals living in Latin America and 200 million users that purchase goods online.

Facebook is already targeting a large number of potential users with strategic companies related to the technological world and that have a high penetration in the market. Uber, for example, has also shown its interest to invest $10 million on Facebook’s blockchain project. Visa, Mastercard and PayPal are also ready to be part of this network.

Just to put it into comparison, Bitcoin has recently surpassed 1 million active addresses but Facebook’s project is already targeting millions of users in different regions around the world.

It is worth mentioning that the executive asked to remain anonymous and he cannot confirm whether Mercado Libre is going to be a blockchain validator in the upcoming Facebook project. However, he believes that is highly possible that the company will be a validator since the firm has been talking with high executives from Facebook.

According to a recent report released by The Block, the consortium has been formed in order to govern the project. There are other firms investing in it, including the venture capital firms Andreessen Horowitz and Union Square Ventures. The cryptocurrency exchange Coinbase has also decided to place some funds in Facebook’s stablecoin project.

As aforementioned, the popular social media network is expected to be releasing a stablecoin that will be backed with a basket of fiat currencies from different countries. Nonetheless, there is no further information about which are going to be these currencies. At the same time, the goal was to be offering services to the remittance market in countries such as India through the WhatsApp application.

After several weeks of rumors, Facebook Messenger, Instagram and WhatsApp could be integrating this new blockchain payments system.

As reported a few days by TechCrunch, Facebook’s project is expected to be unveiled on June 18, just a few hours away from the time of writing this article. Whether it will be positive for Bitcoin (BTC) and other digital currencies remains to be seen.

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