Brazil’s Nubank Plans to Launch Its Own Crypto on Polygon Next Year
Brazil’s digital banking startup Nubank announced Wednesday that it plans to launch a cryptocurrency dubbed Nucoin as part of its new reward program designed to encourage customer loyalty.
Nubank to Launch Its Crypto for Loyalty Reward
According to reports, the digital currency will be available to users in Columbia, Brazil and Mexico in the first half of 2023 after it goes live.
The bank noted that the product would serve as loyalty rewards to be distributed freely among clients who have supported and engaged with its products and services over the years. Users can redeem the tokens as perks and discounts on selected products with no fees.
Nubank also plans to select approximately 2000 customers out of its 70 million clients across Latin America before the launch next year to discuss the product development and token’s utilities, including its decentralised nature and Web 3 features.
The involvement of these customers will enable the company to understand the consumer’s needs and ensure the product will match its user’s expectations.
“We decided to bring a group of customers into this co-creation process precisely to refine our product ahead of the public launch, to ensure we get to a program that truly resonates with our customers’ expectations and needs,” Fernando Czapski, General Manager for Nucoin at Nubank.
Nubank Chooses Polygon
The bank, backed by Warren Buffett’s Berkshire Hathaway, also disclosed that the token would be built on Ethereum’s layer2 scaling solution Polygon Network.
As a scaling solution designed to improve the Ethereum ecosystem, Polygon has become a favourite destination for software developers to build and deploy their products and applications while inheriting the security and decentralisation of Ethereum.
“Nubank’s customer loyalty rewards program, powered by Polygon, will deliver the transformative benefits of blockchain technology to its customers whilst acknowledging the shift happening in the traditional financial space,” said Sandeep Nailwal, co-founder of Polygon.
Meanwhile, the Brazilian bank is not the first Fintech company to mark its presence in the crypto industry by launching a digital currency. Wall Street powerhouse JPMorgan is one of the first financial institutions to launch a token.
~ By William A. Frederick ~
