Key Announcement from Brazil's Largest Digital Bank
Nubank, Brazil's leading digital bank and a Warren Buffett-backed financial institution, has made a significant announcement regarding its cryptocurrency operations. Effective Tuesday, September 10, the bank will discontinue trading of its proprietary Nucoin cryptocurrency. This decision marks the end of Nubank's cryptocurrency trading venture launched in March 2023.
Conversion Details for Nucoin Holders
- Eligibility: Customers holding at least 100 Brazilian Reais (BRL) worth of Nucoin
- Conversion Options: Bitcoin or USDC stablecoin
- Timeframe: 90-day conversion window (until December 9)
- Default Action: Unconverted Nucoins will remain in accounts for potential future rewards program benefits
Understanding the Transition Process
The bank has clarified that Nucoin will transition exclusively to a loyalty program function, allowing customers to redeem platform benefits rather than function as a tradeable cryptocurrency. According to Nubank's official statement:
"Nucoin will now serve solely as part of our loyalty program, providing benefits when exchanged for products within our platform. We're expanding the cryptocurrency program to include new benefits like discounts in 'Shopping do Nu'."
User Concerns and Complaints
Several users have expressed dissatisfaction on consumer complaint platforms:
- Customers report inability to sell small Nucoin balances (e.g., 41 BRL)
- Claims of unfulfilled cashback promises from financial tech card usage
- Frustration over perceived lack of consideration for investor losses
One vocal customer stated:
"The bank sold me an asset and now abruptly decides to close it without concern for my losses."
Conversion Requirements and Disclaimers
To convert Nucoins to Bitcoin or USDC, eligible customers must:
- Complete Nubank's conversion declaration form
Acknowledge that Nubank assumes no liability for:
- Potential conversion losses
- Market value fluctuations
- Any related damages
Nubank's Broader Cryptocurrency Strategy
Beyond Nucoin, Nubank previously supported trading for multiple cryptocurrencies. Notably:
- Founder David Vélez authorized allocating up to 1% of the bank's cash reserves to digital assets
- Maintains infrastructure for Bitcoin and stablecoin transactions despite Nucoin's discontinuation
Warren Buffett's Indirect Cryptocurrency Exposure
While Buffett personally avoids direct Bitcoin investments, his Berkshire Hathaway holds significant Nubank shares, creating indirect digital asset exposure:
- Current Holdings: 107 million shares in Nu Holdings
- Investment Timeline: Initial $750 million position during Nu's 2021 IPO
- Performance: 66% year-to-date stock price growth
Market Response
Following the announcement:
- Nubank's NYSE-listed shares (NU) saw a modest 0.58% decline
- Maintains strong monthly growth of 14.32%
- Current trading price: $13.73 per share
Frequently Asked Questions
Q: Can I still use Nucoin after the conversion deadline?
A: Yes, but only as loyalty points within Nubank's rewards program, not as a tradeable cryptocurrency.
Q: What happens if I don't convert my Nucoins?
A: Your balance will remain for potential future rewards program benefits, but loses tradeable cryptocurrency status.
Q: Why is Nubank discontinuing Nucoin trading?
A: The bank is refocusing its cryptocurrency strategy, though hasn't provided specific reasons for discontinuing Nucoin trading.
Q: How does this affect Nubank's other cryptocurrency services?
A: Bitcoin and USDC transactions remain available—only Nucoin trading is being discontinued.
Q: Is Nubank exiting the cryptocurrency market entirely?
A: No. The bank continues supporting Bitcoin and stablecoin transactions while ending only its proprietary Nucoin trading.
Q: What should I do if I have less than 100 BRL worth of Nucoins?
A: These balances will remain in your account for potential future rewards program participation.