Brazil’s largest digital bank, Nubank, has launched a program that will present citizens with the opportunity to buy Bitcoin through its platform.
BTC Trading Opens To All Nubank Customers
The bank has over 53.9 million Brazilian customers who will now have access to the “Nubank Crypto” tab. The feature was first announced in May through a blog post that explained that it would have a phase-wise rollout. The initiative was launched in partnership with NYC-based fintech company, Paxos Trust, to offer Bitcoin and Ethereum trading services to customers. Although the project initially commenced with the two leading cryptos, the plan was to expand to other altcoins soon. The blog post was updated on Monday to reflect the new status, which clarifies that the feature is now available to all of Nubank’s customers.
How Does The Feature Help Customers?
It will allow users to buy and sell BTC instantly. Each transaction conducted on the app will include a small fee, which is around 0.02% of the transaction amount. However, the feature does not allow the withdrawal of purchased coins to an external wallet.
Other than providing a platform to buy or sell BTC, the app also serves an educational purpose. The Crypto section of the app contains informational content to spread awareness and educate new investors.
The text on the app reads,
“The first cryptocurrency to exist. Bitcoin was created with the intention to decentralize the financial system and influenced all the other cryptocurrencies since then. Generally, people compare Bitcoin to gold and tend to store it for the future.”
Brazil’s Crypto Market
The crypto market in Brazil is still growing. The senate recently approved the country’s first regulatory bill to govern crypto, which is colloquially being called the “Bitcoin Law.” The mayor of Rio De Janeiro has also indicated his intentions to establish the city as a crypto hub. However, with around 26% of the population aged 18 to 60, i.e., 34.5 million Brazilians engaging in active crypto trading, many financial institutions and companies have jumped in to provide trading services to budding investors.
The Nubank app was the country’s most widely used banking platform in 2021. The startup has achieved unicorn-level status, with investments from leading VC firms like Warren Buffett’s Berkshire Hathaway. Other financial institutions offering crypto services in Brazil consist of traditional banks like Itao Unibanco and investment banks such as BTG Pactual and XP Investimentos.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
