Brazilian warns about Bitcoin sold by Nubank: “Bitcoin lie”

Posted on

Part of the bitcoin community in Brazil has turned on the alert against the sale of cryptocurrencies offered by Nubank, which does not allow withdrawals and deposits of digital assets. Thus, whoever buys a ” little piece” of cryptocurrency in the digital bank faces problems when it needs to make payments with digital currency.

This is because bitcoin is a very common cryptocurrency as a means of payment over the internet. There are several sites that offer promotions for those who pay using the new digital payment method.

However, since it launched its operation in the crypto market, Nubank is one of the companies that does not allow this interaction.

Brazilian warns about selling Bitcoin practiced by Nubank

Last Thursday (24), the Bitcoin community in Brazil noticed a problem. In a publication made by Twitter, Seiiti Arata said that he sells a course and offers discounts for those who pay with bitcoin.

As a Black Friday promotion, he gave discounts on products for those who buy with Bitcoin.

The problem, however, is that whoever has bitcoin at Nubank cannot use the digital currency to make payments, since bitcoin cannot be withdrawn from the bank’s platform. According to Arata’s alert, the sale of cryptocurrencies by Nubank is a disservice.

“Clients of mine want to buy the Black Friday offer that it’s only for those who pay in BTC. And then they just can’t USE the bitcoins they think they bought.”

😡I was [email protected] see the DISSERVICE you perform selling LIE bitcoin.

My clients wish to purchase the offer Black Friday which is only for those who pay in BTC

And then they simply cannot USE the bitcoins they believe they bought with you.

How is that?

— Seiiti Arata (@seiitiarata) November 24,

After the outburst, many who saw the publication commented that customers already knew that buying at institution would be like this. When Nubank started to release the purchase and sale of cryptocurrencies, it had the support of the company Paxos to carry out the custody.

From the beginning, the bank said that it would not release withdrawals, nor receive bitcoin deposits. Other companies in Brazil adopted the same business model, but industry experts began to question the practice.

Custody at brokerage houses is going through a delicate moment

The reason for the warning against the sale of bitcoin by Nubank is that custody is currently one of the hot topics in the sector.

With the end of FTX – who claimed to have custody of customers’ cryptocurrencies, but a day later stopped withdrawals – many want to create their own wallets and store their digital currencies safely.

For the profile that made the alert in Brazil, Nubank does not sell real bitcoin, but only a synthetic financial product.

They didn’t make it clear. Open the app and see for yourself. There it says they are SELLING BITCOIN. False. If you understand what bitcoin is, you know that what is being traded there does not have the characteristics of bitcoin. They are selling a synthetic, a financial product pegged to BTC

— Seiiti Arata (@seiitiarata) November 24, 2022

Livecoins reached out to Nubank for comments on the process of withdrawals and deposits, but has not yet received a return.