Nubank, the Brazilian digital banking startup, will be launching its own cryptocurrency – Nucoin – in the first half of 2023. The token is touted as a new way to recognize customer loyalty and encourage engagement with Nubank products.
The digital bank also plans to offer discounts and other perks to holders of the token. Fernando Czapski, the general manager for Nucoin, Nubank, said the project is another step ahead in their belief in the transformative potential of blockchain technology. It wants to democratize even more, and go beyond the purchase, sale, and maintenance of cryptocurrencies in the Nu app. Nubank will invite 2,000 customers to participate in a forum group for guiding the development of Nucoin. Czapski said the proposal is to explore a decentralized process of product creation, and characteristics of Web3.
Nucoin is built on the Polygon network, a Layer 2 protocol, where transactions can often be costly and take longer to process. The network can support thousands of transactions per second. In regards to regulation, a spokesperson for Nubank said they constantly evaluate the regulatory framework as an important part of their product development process. Since its launch in 2013, Nubank has attained 70 million users across Brazil, Mexico, and Colombia. It’s backed by Warren Buffett. In June 2021, Buffett’s firm Berkshire Hathaway took a $500 million stake in Nubank.