Nubank, backed by Warren Buffett’s Berkshire Hathaway company, stated in a statement on September 10, 2024 that Nucoin trading will be stopped immediately. The bank offered Nucoin holders the option to convert their tokens into Bitcoin (BTC) or stablecoin USDC by December 9, 2024.

This development comes after a dramatic drop in Nucoin’s price, exceeding 97% in the last year. According to Nubank’s statement, if users do not make this conversion, their assets will be accumulated for possible future earnings under the rewards program.

Nucoin was launched by Nubank on the Polygon blockchain network on October 19, 2022. However, after about two years, the bank decided to stop trading this token.

While Nubank offers its customers who hold at least 10 reais worth of Nucoin the option of converting these tokens into Bitcoin or USDC, it stated that trading was immediately stopped in order to protect its customers against potential fluctuations in the cryptocurrency market.

This decision was also stated in the email sent to customers. In the email, it was stated that trading was suspended to protect investors against market reactions.

The last price of Nucoin before trading was halted was recorded as $0.0158, according to CoinMarketCap data. The token reached its highest level at $0.59 in April 2023. However, there has been a huge decrease in its value in the last year.

Nubank’s crypto services started in May 2022, and the bank announced that it would allocate 1% of its net assets to Bitcoin. Following this announcement, Nubank collaborated with Paxos to provide cryptocurrency buying, selling and custody services to its customers. This partnership offered Nubank’s customers the opportunity to make cryptocurrency transactions directly through the bank.

Nubank announced in July 2024 that it had reached 100 million customers operating in Brazil, Mexico and Colombia. The bank also stated that it offers Nucoin, as well as 14 different cryptocurrencies.

These moves by Nubank in the cryptocurrency ecosystem are considered as part of its efforts to increase financial inclusion in Latin America. It is known that interest in cryptocurrencies has increased due to high inflation rates, especially in countries such as Argentina.

Argentina’s 276% annual inflation rate, combined with locals’ distrust of traditional banking systems, has led to a regional surge in cryptocurrency adoption.

However, some financial experts and entrepreneurs emphasize that regulators need to improve the legal framework to ensure true financial inclusion in the region.

Speaking at the Web Summit held in Qatar in February 2024, Yuno CEO Juan Pablo Ortega stated that the lack of trust in banks in countries such as Argentina makes people tend to use cash.

However, Ortega stated that fintech companies are taking important steps to increase financial inclusion in Latin America, Asia and Africa, and that these companies are trying to rebuild users’ trust in traditional banking systems.

Nubank’s suspension of Nucoin trading highlights the challenges and opportunities of growing cryptocurrency markets in Latin America.

While fintech companies continue to play an important role in these regions where interest in cryptocurrencies is increasing, improving the regulatory framework and rebuilding consumer confidence are of great importance for the sustainability of this growth.