Setback for Mercado Libre?: it could lose this millionaire sum because of the Central Bank
This is a regulation imposed by the agency that could make the Argentine unicorn a fortune. But it will not be the only company affected
By iProfessional
01/12/2022 – 8:04 p.m.
The most successful local unicorn, Mercado Libre could to lose the sum of u$s 50,000,000 due to a regulation imposed by the Central Bank of the Argentine Republic (BCRA
A regulation of the BCRA published on December 30 -but which begins to be operational in January-, establishes that on funds from virtual wallets, since January they must be 100 percent reserve, removing the possibility for PSPs to obtain profitability from them.
“At the local level, what could Mercado Libre is to adjust any kind of costs but there seems to be no reason for it to do so Just before this proposal, they had already increased 1 percent to loads with debit“, he explained to iProUP Ignacio Carballo, Fintech & Digital Banking Ecosystem Director of the UCA.
And he highlights that what is most interesting is that many companies will be able to overcome this loss of income while others will not be able to overcome it.
.#IMPORTANT: The backgrounds of the virtual wallets will remain embedded in the #BCRA. They should already be immobilized in sight accounts in financial entities. Now as of January 1, 2022 they will be immobilized in the BCRA (does not apply to invested money) pic.twitter.com .com/Ps7fzgstTp — Ignacio E. Carballo (@IECarballo)
December 30, 2021
“In this sense, At the end of the day, although this is detrimental in economic terms, it is not the main flow of Mercado Libre and could help it to consolidate itself as a main player in the face of so much competition”, he comments.
In addition, he adds that although there are many competitors, there are also the market is already concentrated .
“These numbers are only for Mercado Libre but it may affect other companies,” he remarks.
In his twitter thread, the economist clarifies that the regulations apply to funds that are not invested in an FCI
As of the third quarter of 2021 Mercado Pago would have $325 million dollars in Mercado Fondo and U$D 270 million in banks.
The u$S 270,000,000 dollars would be the ones that the BCRA would impose 100% as reserves and that the Banks that offer a collection account to Mercado Pago could not use in LELIQ and pay part to MELI.
The BCRA will make Marcos Galperin, CEO of Mercado Libre, lose millions
In this way, if the regulations of the BCRA take away $50,000,000 per year from the Market Payment one might well think of a price increase or response.
Carballo explains to iProUP: “Mercado Libre’s reaction to this share, this loss in Argentina may be to adjust its strategy in other economies.”
The economist emphasized this argument, keeping an eye on how Mercado Libr
More details
For example in Brazil, the giant of the e -regional commerce already has a license and can receive assets and issue Credit Cards. “I would add that Chile advances its digital account, and Mexico without a doubt,” he points out.
From his Twitter account, Carballo adds that the BCRA does not believe that MELI will do it, nor that Apply to be a Bank immediately.
“Hence, the calculation is around an annual loss of u$s40 M or u$s50 M
.#IMPORTANT : The funds of the virtual wallets will remain embedded in the #BCRA. They should already be immobilized in sight accounts in financial entities. Now as of January 1, 2022 they will be immobilized in the BCRA (does not apply to invested money) pic.twitter.com .com/Ps7fzgstTp — Ignacio E. Carballo (@IECarballo)
December 30, 2021
Note: This article has been indexed to our site. We do not claim legitimacy, ownership or copyright of any of the content above. To see the article at original source Click Here
Etekcity Food Kitchen Scale, Digital Grams and Ounces for Weight Loss, Baking, Cooking, Keto and Meal Prep, LCD Display, Medium, 304 Stainless Steel
$10.99 (as of March 6, 2025 20:20 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)
Owala Name Plate, Owala Customized Name Tag 24 32 40 Oz, Owala Customized Name Plate, Personalized Owala Lid Topper, Owala Accessories
$7.95 (as of March 6, 2025 19:43 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)
Wickless Candles For Candle Warmer Lamp, Many Scents To Choose, 100% Non-Toxic Soy Wax, Scented Candle Melts For Warming Plate, Handmade In The USA (Velvet Vanilla)
$17.95 (as of March 6, 2025 19:43 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)
Artnaturals Kojic Acid Soap + African Net Sponge (2 pack X 142g Turmeric bars) Dark spot remover & Scars - Original Japanese Complex Vitamin C, Hyaluronic Acid, retinol, shea butter (Citrus)
$14.97 (as of March 6, 2025 20:20 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)
