Bitcoin enthusiasts can now purchase bitcoin (BTC) via Brazilian Nubank, one of the world’s largest online banks. This will give around 54 million users and more than 1 million companies the option to transfer funds using the blockchain-based currency.
The online bank has introduced Nubank Cripto, the “new Nu app solution” and with the launch, the firm aims to “take another step in our mission to offer more services and products in an uncomplicated and accessible way.”
How Does it Work?
To initiate a transaction, users will have to open their application and make a fund transfer by providing a small commission of about 0.02%.
Along with Bitcoin, the bank will also allow users to initiate transactions using ether (ETH).
“Due to the weight it [bitcoin] has in the market and the technology it represents, it is considered the most solid cryptocurrency on the market. So we started with it,” explained Nubank.
Users Cannot Withdraw Bitcoin
Unfortunately users of Nubank are not allowed to withdraw bitcoin. That means, users don’t actually own the private keys to their bitcoin but only get a promise or IOU. This could change when the banks experience with bitcoin is fostered. Similarly, PayPal added a withdraw feature some time after they offered buy and sell options to users.
The Bitcoin Ecosystem is Growing
Additionally, the banking firm also added that it has partnered with Paxos, a regulated blockchain infrastructure platform, to allow investors to buy bitcoin via the application as well.
Brazil is turning into a major crypto hub as recently, Brazil’s largest real estate developer Gafisa announced that it will accept bitcoin as payment for property purchases.