Brazil’s Nubank Launches Crypto Services with Paxos Partnership

Brazil-based digital bank, Nubank has launched cryptocurrency services in its native market. It is now offering customers to buy, sell and hold two cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term: Bitcoin and Ethereum.

Announced on Wednesday, the services have been launched in partnership with blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term infrastructure provider, Paxos. The digital bank is going to start rolling out the crypto services gradually to its customers in May and cover its entire customer base by the end of June.

“There is no doubt that crypto is a growing trend in Latin America, one that we have been following closely and believe will have a transformational impact on the region. Yet the trading experience is still very niche as customers either lack information to feel confident to enter this new market or just get frustrated by complex experiences,” said Nubank’s Founder and CEO, David Vélez.

Low Investment Barrier

Additionally, Nubank is keeping the investment barrier on the lower side. It will allow users to purchase crypto as low as BRL 1 (around $0.20). Moreover, the company is exploring the possibilities to expand its offerings beyond the top to digital currencies, promising that it “will do frequent curation to add more in the future.”

Paxos’ Co-Founder and CEO, Charles Cascarilla said: “The Company’s reach and impact across the country’s different segments ensure that even more people will be able to dive into crypto than ever before. Nubank’s move to enter the crypto trading space represents a strategic move not only for the company but for an acceleration of the cryptocurrency adoption in the region.”

Nubank’s decision came days after the central bank of Argentina propagated its decision of prohibiting regulated banks from offering cryptocurrency services.

Further, Nubank’s parent company decided to allocate 1 percent of its cash reserves for the purchase of Bitcoins, following in the footsteps of American companies like MicroStrategy and Tesla.