Why the shift in wealth requires a shift in how we bank
Despite trying economic times, Africa remains open for business with millionaire growth of 42% predicted over the next decade according to the Africa Wealth Report 2023 by Henley & Partners. Alongside the foreseeable growth in high net-worth individuals comes the natural progression of the ‘mid-affluent’ population.
The mid-affluent are people who find themselves straddled between upper Living Standards Measure (LSM) classes – they are not wealthy enough to be considered high-net-worth yet hold office in important roles that make them likely to acquire extensive wealth in the years to come, such as doctors, lawyers, C-suite executives, and entrepreneurs.
This emerging mid-affluent population calls for a new approach to banking. Often overlooked by traditional private banks, this group is seeking modern and inclusive banking solutions such as offshore services and integrated digitisation with cryptocurrencies.
The report indicates that investment migration in Africa has been on a growth trajectory for the past 25 years but has recently experienced a significant surge. High-net-worth families are seeking citizenship by investment in places like Portugal and the Caribbean to access the financial benefits that come with dual-citizenship, such as foreign bank accounts in less volatile economies.
Since these citizen-by-investment programs are out of reach for the mass affluent, they are exploring other ways of financial migration via cryptocurrencies and, more recently, an international offshore bank which is disrupting the industry.
Xapo Private Bank is the first crypto-hybrid offshore bank catering to the mass affluent population in emerging markets that suffer from extreme currency fluctuations, volatility, and hyper-inflation. The Gibraltar-based and fully regulated international private bank offers crypto-friendly dollar accounts to diversify and protect one’s wealth offshore.
A pioneer in the international industry, Xapo Private Bank is also the first bank in the world to support USDC withdrawals from a US Dollar bank account, enabling members to send USDC to beneficiaries anywhere in the world without any fees.
“Offshore banking should not be accessible to the ultra-rich alone. There are millions of people worldwide living in volatile economies who want to mitigate risk and protect their wealth from socio-economic elements outside of their control such as currency fluctuations and hyper-inflation. We believe the best way to do so is by having an offshore dollar account with Bitcoin capabilities, earning interest,” says Seamus Rocca, CEO of Xapo Private Bank.
Rocca says the US dollar is the meta currency of the world and will remain so for the foreseeable future. Backed by the powerhouse US economy, it remains the safest option in terms of long-term value protection.
When it comes to cryptocurrency, Rocca maintains that Bitcoin is the only cryptocurrency worth investing in for three reasons: (1) because it is sovereign (not controlled by any government, company or individual); (2) it is finite (only 21 million Bitcoin will ever exist and therefore will remain in demand); and (3) it is the most secure blockchain-based currency.
“We’re taking banking into the future by providing all the perks of having a regulated offshore bank account and integrating it with VISA, Mastercard and the Lightning Network, enabling people to pay for goods by swiping their metal Xapo card and paying via their dollars or their Bitcoin,” says Rocca.
It’s promising to see that a regulated international bank is offering modern solutions to an increasingly important question: how can I protect my savings from increasing uncertainties and circumstances outside of my control?
To find out more about Xapo Private Bank, visit www.xapo.com
In conversation with Xapo Private Bank.
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