Key Highlights:
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Brazilian neobank, Nubank, has introduced USDC, a stablecoin, to its offerings, providing access to roughly 85 million people, mainly in Brazil.
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The move aligns with other significant players in the region, such as Mercado Libre, adopting stablecoins. Nubank’s introduction of USDC enhances profitability among its strong customer base of 90 million individuals.
Article Summary:
Nubank has announced that it will be adding USDC— a stablecoin— to its existing virtual currency offerings. This new offering will create significant possibilities for the growth of stablecoins in Latin America. The USDC was created by Circle and is pegged to the value of the dollar. Unlike other cryptocurrencies like Bitcoin and Ethereum known for their price volatility, the value of USDC remains stable.
Despite challenges faced by the wider cryptocurrency industry, stablecoins continue to flourish across Latin America. Nubank’s move supports the robust demand for access to dollars across Latin America, particularly in Brazil, which is a driving force for digital currency adoption in the region.
The Warren Buffett-backed digital lender’s decision aligns with the trend seen in key regional player, Mercado Libre. In September, Mercado Libre’s fintech arm, Mercado Pago, also introduced USDC in Chile, demonstrating a broader interest in the technology.
Since Nubank’s launch of Nu Cripto in 2022, it has seen remarkable adoption, reaching a million users just a month after launch. Nubank’s USDC offering would further solidify its presence in the region while bolstering its customer base.
In the face of a crypto downturn, stablecoins are gaining popularity in Latin America due to their ability to navigate local currency restrictions and facilitate cross-border transactions and remittances with relative ease. In inflation-prone areas like Argentina and Venezuela, they’re seen as a safe haven against rampant inflation and unstable currencies.
For Ernesto Calero, general manager at the Mexican Fintech Association, they have enabled people to use cryptocurrencies as a store of value amidst the economic uncertainty and to expedite cross-border remittances.
