- Mercado Bitcoin, a Brazilian cryptocurrency exchange, received approval from the central bank to operate as a payment provider.
- MB Pay, Mercado Bitcoin’s fintech solution, offers digital banking services utilizing crypto assets held on the exchange.
- Brazil’s vibrant demand for digital solutions has attracted major cryptocurrency firms like Binance and Coinbase.
According to reports from local media, Mercado Bitcoin, a cryptocurrency exchange, received approval from Brazil’s central bank on June 2 to operate as a payment provider. This development allows the company to introduce its fintech solution, MB Pay.
Meanwhile, Roberto Dagnoni, the CEO of 2TM, the parent company of Mercado Bitcoin, stated:
The approval of the Central Bank is a crucial step, as it allows us to continue expanding our business and providing a better service to our customers.
Roberto Dagnoni
MB Pay, functioning as a payment institution, has the capability to offer Brazilian users a range of digital banking services utilizing crypto assets held on the exchange. These services include digital fixed-income investments, staking, and various financial transactions.
Additionally, a debit card that enables users to convert their crypto assets into traditional currency is anticipated to be available in the near future.
Mercado Bitcoin has recently formed a partnership with Guide Investimentos, a traditional local broker, with the objective of venturing into the digital asset market.
The launch of Mercado Bitcoin’s fintech solution, originally scheduled for 2021, faced a delay due to the regulatory approval process. Coincidentally, on the same day, Mercado Bitcoin received an order to return over 2,182 Bitcoin (BTC) to a group of investors.
The value of these Bitcoin amounted to approximately $59.3 million at the time of writing. The investors alleged that a co-founder and former executive of Mercado Bitcoin had withheld the funds, falsely claiming a hacking incident back in 2013.
The robust demand for digital solutions and Brazil’s large population of nearly 214 million people have attracted numerous cryptocurrency firms to establish a presence in the country. Brazil has been recognized as one of the key global markets for Binance, and its local partner, Latam Gateway, obtained a payment provider license on May 19.
In addition to Mercado Bitcoin, other cryptocurrency exchanges such as Crypto.com and Bitso have also acquired payment provider licenses in Brazil. Coinbase, an American exchange, is also expanding its operations in the country.
Since March, Coinbase has collaborated with local payment providers to facilitate cryptocurrency purchases and enable deposits and withdrawals in the local currency.
