Nubank plans stablecoin payments through a credit card pilot, aiming to merge blockchain with banking and expand dollar-backed payments across Latin America.
Nubank, the largest digital bank in Latin America, is preparing to test payments using dollar-pegged stablecoins through its credit card services. Roberto Campos Neto, who is the vice-chairman and former governor of the Brazilian central bank, shared the plan in the Meridian 2025 event.
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The project is part of a larger plan to integrate the conventional banking system with blockchain-based digital assets. According to Campos Neto, the rising significance of blockchain technology in contemporary finance is especially relevant in areas where inflation rates and currency volatility are highest.
Campos Neto argues that a large number of individuals are not using digital assets to spend, but to keep value. This action is a sign of a change in the perception of users toward stablecoins that are becoming the less risky option compared to more unstable local currencies.
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The pilot will be the next step in the implementation of the idea of using stablecoins and making direct payments using credit cards. In case the trial is successful, the technology can be extended to other services provided by the bank. According to Campos Neto, the move was a step in creating a financial ecosystem that relied on blockchain and artificial intelligence.
There are also international implications of the project. The majority of stablecoins are currently pegged to the U.S dollar, which boosts the demand of U.S Treasuries around the world. Campos Neto proposed that this trend would be something of concern in Europe, where euro-backed stablecoins might have to be developed to compete. He observed that the role of the dollar as the supreme currency will not come easily.
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Nubank currently has over 100 million clients in Brazil, Mexico and Colombia. The company already takes an interest in digital assets. In 2022, it invested 1% of its net assets in Bitcoin. Shortly after, it launched crypto trading services for customers. As a result, users gained easier access to digital assets.
The use of Stablecoins in Latin America is increasing at a high pace. The crypto activity in Brazil is associated with dollar-backed assets in about 90 percent. Stablecoins, including the USDt and USDC, constituted more than 70 percent of crypto purchases in 2024 in Argentina, where inflation has been rising more than 100 percent, according to a report by the crypto exchange Bitso.
Although the interest has been increasing, there exist challenges. According to Campos Neto, it is simple to accept deposits and issue credit in tokenized format but difficult to accept deposits in stablecoins and issue credit on them. Larger adoption will probably require regulatory clarity and infrastructure support.
The next pilot is an indicator of a potential change of the interaction between the traditional financial institutions and the blockchain technology. Nubank is making this move which might affect the functioning of the everyday banking services in the emerging markets.
Provided its success, the implementation of stablecoins in the credit card systems would allow making digital dollars more accessible and usable in everyday life. The creation can also motivate other financial institutions within the region to consider other models and this will only enhance the convergence of conventional banking and decentralized finance.