Nubank to Release Cryptocurrency for Customer Rewards Program
Warren Buffett's Nubank plans to introduce Nucoin digital currency as part of its new customer rewards program in the first half of 2023.
One of the biggest digital banks outside of Asia, Nubank, plans to enter the digital economy by issuing its crypto-currency. With offices across Latin America, the Brazil-based institution will issue its own token, Nucoin. This currency will be backed by the Polygon blockchain, a second layer that saves developers and users fees, and it will be distributed to all bank customers by airdrop.
Nubank's announcement follows the launch of MercadoCoin by South American e-commerce giant MercadoLibre Inc. (MELI.O), which in August announced the creation of the cryptocurrency that would be used in the loyalty program of the company.
Currently, Nubank's Brazilian customers can make Ethereum and Bitcoin transactions within its banking app. The lender is considering making Nucoins tradeable in the future.
Fernando Czapski, general manager for Nucoin at Nubank said, "This project is one more step that we take because we believe in the transformative potential of blockchain technology and in democratizing it, even more, going beyond the purchase, sale, and maintenance of cryptocurrencies in our application."
The Nubank has long been involved with cryptocurrency. In May, it was one of the first companies in Brazil to offer cryptocurrency trading services. Nubank reported serving 54 million customers in June. In September, the company announced it served 70 million Latin American customers with nearly 2 million crypto purchases.
CBW - External Analyst