Latin America's Digital Bank Seeks to Undermine Dollar Supremacy Through Stablecoin Initiatives

Nubank, the biggest digital bank in Latin America, is preparing to introduce a pilot project that will let users pay with dollar-pegged stablecoins through their credit cards. Announced by Vice Chairman Roberto Campos Neto, this move highlights how blockchain technology is increasingly reshaping the world of finance, especially in developing regions. At the

2025 conference, Campos Neto discussed blockchain’s power to connect digital assets with mainstream banking, supporting tokenized deposits while keeping traditional credit services intact. He pointed out that stablecoins tied to the U.S. dollar are becoming more popular in places where local currencies are hard to exchange or where political uncertainty is high. While stablecoins are often used as a safe store of value, they are also starting to serve as everyday payment tools.

This pilot program is designed to bring dollar-based stablecoin payments into Nubank’s wider suite of offerings, in line with its mission to build an integrated financial platform powered by artificial intelligence and blockchain. Campos Neto noted the initiative’s wider geopolitical impact, since most stablecoins are linked to the dollar, which boosts demand for U.S. Treasuries and causes worries in Europe. He mentioned that euro-based stablecoins may emerge later, but the dollar’s strong position is tough to unseat. If this trial succeeds, it could lead to faster stablecoin adoption across Latin America, shifting them from speculative investments to practical payment options in emerging markets.

At the same time, Nubank is broadening its rewards program for holders of U.S. Dollar Coin (USDC), now giving a fixed 4% annual yield to those with at least 10

. This benefit, which started with a limited user group, is currently available to all Nubank Cripto customers in Brazil. USDC, fully backed by U.S. dollars and highly liquid assets, presents a more stable alternative compared to other digital currencies. Nubank reported that its customers’ USDC balances have multiplied tenfold in 2024, with over 30% of users now holding the asset. The bank has also introduced a crypto swap tool, letting clients exchange , , , and for USDC at lower fees, making the platform even more useful.

The expansion of stablecoins brings both advantages and challenges for the global financial system. Dollar-linked stablecoins currently help cement the dollar’s lead in cross-border payments, but their swift rise has triggered debates about financial security and regulatory measures. Some analysts, like Eneko Knörr, believe stablecoins could further solidify the dollar’s status in global trade, while others, such as Dean Baker, caution about risks like regulatory loopholes, liquidity concerns, and weakened consumer protections. Policymakers are now paying more attention to these issues, especially as stablecoins become more attractive in regions with fragile banking systems, where they can offer quicker, more affordable international payments and promote greater financial inclusion.

Nubank’s efforts reflect a larger movement among traditional

to adjust to the expanding role of digital assets. The bank has previously worked with Fireblocks, a top blockchain infrastructure company, to scale up its blockchain services and bolster crypto asset security. This partnership allows Nubank to innovate with blockchain, including its role in Brazil’s Central Bank’s tokenized Real Digital pilot. Fireblocks’ technology also supports safe, efficient transaction settlements through its worldwide network, linking Nubank to regulated banks and liquidity providers. As stablecoins shift from speculative to mainstream payment solutions, banks like Nubank are leading the way, merging established financial systems with the emerging decentralized economy.