Nubank has made headlines this week with the launch of its very own cryptocurrency, Nucoin. This move starkly contrasts with recent crypto bans from UK banks but could position the neobank to become a pioneer of next-generation banking. It is also likely to inspire other players in banking with a favorable view of cryptocurrencies.
Nucoin will be central to the bank’s loyalty program, offering a secure and safe gateway into the cryptocurrency space for its 70 million customers across Brazil, Mexico, and Colombia. This move by Nubank contrasts with recent announcements by UK incumbent banks, Nationwide and HSBC, which plan to restrict their customers’ ability to buy cryptocurrencies. Meanwhile, neobank Starling has gone one step further by banning all crypto transactions outright. The popularity of cryptocurrencies and NFTs is on the rise, with 21% of Americans reportedly owning cryptocurrency as of 2022. In addition, the emergence of B2B companies offering “crypto-as-a-service” is further driving this trend. As we look ahead to 2023, traditional and neobanks are faced with an important decision to make as they consider the potential advantages of offering cryptocurrency as a catalyst for their next-generation products and services. This year is a pivotal moment for the financial industry as it navigates the rapidly evolving world of digital assets.
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