Nubank, a Brazilian digital banking company, will launch its own cryptocurrency in the country next year. According to their corporate release, the token called nucoin will be available to Nubank’s 70 million members in the first half of 2023. Polygon Technological, an Ethereum scaling blockchain developer, will provide technology and technical assistance for Nucoin’s expansion. In addition, about 2,000 consumers will be chosen to test Nucoin within the next month. This signifies yet another big financial institution’s newest foray into digital assets.
In a statement, Fernando Czapski, general manager for nucoin at Nubank said “Nucoin is a new way to recognize customer loyalty and encourage engagement with Nubank products.”
“The project is another step ahead in our belief in the transformative potential of blockchain technology and to democratize it even more, going beyond the purchase, sale and maintenance of cryptocurrencies in the Nu app,” Czapski said.
They are currently in consideration of making Nucoins tradeable in the future. In the meantime, the bank allows Brazilian users to make Bitcoin and Ethereum transactions. They have introduced their crypto exchange platform back in June, 2022 and reached 1 million users in just a month.
The uprising of digital frauds and crime-related transactions has led to many countries tightening their securities. European Union and the US are all in preparation for a stricter regulations towards their digital finances. In response to regulatory approval in Brazil before launching its token, they mentioned that: “We are constantly evaluating the regulatory framework as an important part of our product development process.”
Nubank is not the first bank to issue cryptocurrency. Back in 2020, JPMorgan launched its own cryptocurrency, JPMCoin. It can be considered as a stablecoin pegged to the US dollar one-to-one. Unlike JPMCoin, nucoin will be created into a coin that has price fluctuations base on supply and demand. This week, Mastercard had also announced their plans to build a program, facilitating banks in offering cryptocurrency to their clients. This program will focus on security and compliance towards cryptocurrency trading.
Closing thoughts
We are slowly seeing more and more financial institutes opening up to the prospects of cryptocurrency. Despite being in the “Crypto Winter”, I cannot help but notice that favorable news towards crypto are still emerging on a daily basis. Will the incorporation of huge financial firms be an asset to the crypto world? Or will it be a burden of rules and regulation? Right now, what I can do is to provide you with the latest industry news to keep you updated! In the meantime, do check out our MEXC blog for more industry news and start your crypto trading journey with MEXC!
