Right now, putting your hard-earned money into a savings account that has a less than ideal interest rate does as much good as putting it under your mattress.
Either way, your money isn’t staying ahead of inflation.
Traditional savings banks pay us a few percent interest then they turn around and lend our money to borrowers at rates as high as 21%, making them hundreds of billions of dollars in profits annually.
The truth is, today, there is an alternative to traditional banks.
In all fairness, banks have to make money to pay for all those tall glass and marble buildings filled with floors and floors of employees.
They all need equipment, electricity, coffee, air conditioning and local branches with giant vaults. And after all of that is paid for, there needs to be some profit left over for the shareholders.
But what if we could eliminate all of that and return those profits back to the customers? Sounds like a fantasy, right? Today it’s a reality, thanks to the blockchain revolution.
Blockchains are computer networks that facilitate distributed ledgers. They are like banks with no headquarters, no offices, no employees, and no coffee pots.
Blockchains are “decentralised” because they do not require any central authority. They are, in essence, owned by the people who use them. These decentralised financial platforms are known collectively as DeFi.
Since the advent of the DeFi revolution, centralised banks are no longer a necessity for those seeking financial services. And the truth is, in many cases, DeFi platforms are as easy to use as a regular bank.
DeFi has got banks worried
Traditional banks are rightfully nervous that DeFi platforms are going to take away more and more of their customers. This is because, until now, they had no competition.
Sure, you could stuff your cash in a mattress instead of a bank, but you’d be losing money. The South African rand has an annual inflation rate of 5.9%.
That means in ten years’ time, your money’s buying power would be almost cut in half. That’s downright painful.
Alternatively, you could put your money in a regular savings account. But it still won’t keep up with inflation. South African savings accounts offer an average of 4.88% interest.
Another option for South Africans who want to keep up with inflation is to hold U.S. dollars. ZAR has devalued against the U.S. dollar at a rate of around -7.7% a year for the last 10 years.
Holding U.S. dollars would put you ahead of the game by a couple of percent over holding ZAR in a traditional savings account.
Stablecoins to the rescue
There’s a better option still. By putting money into cryptocurrencies called stablecoins that are equal to U.S. dollars, holders can earn double-digit interest annually.
It might sound too good to be true but DeFi makes it possible.
Don’t let the idea of investing in cryptocurrency scare you. South African businesses such as Revix offer high-interest stablecoin accounts. Revix’s Savings Vaults pay clients a whopping 12% annual interest.
Additionally, because the accounts are pegged to the U.S. dollar, the inflation rate is lower than holding ZAR. Win-win.
But how can a stablecoin savings account possibly pay 12% interest when banks pay only 5%?
“The answer is that with stablecoins there are no traditional banks involved,” says Brett Hope Robertson, Head of Investments at Revix.
How South Africans can earn 12% interest
Anyone can take advantage of the superior returns of stablecoins without having to be familiar with cryptocurrencies. The only difference you’ll notice is the higher interest you’ll be earning.
Both companies have achieved regulatory compliance in South Africa, and USDC is fully backed one-to-one with US dollars.
It’s a safe place to store your savings in USD while earning 12% interest.
Moreover, the Revix USD Savings Vault provides easy exposure to U.S. dollars without having to deal with Forex desks.
Earn 12% annual interest with Revix
The minimum balance is 100 USDC and there’s a 30-day minimum lockup period. Other Terms and Conditions apply.
How to get started
Taking advantage of this 12% offer couldn’t be easier:
- Make a deposit into your Revix account
- Buy at least 100 USDC
- Lock the USDC in your Savings Vault for 30 days
It’s that simple.
With 12.00% APY on a US dollar account, Revix offers a higher annual interest rate than any traditional South African savings bank.
Revix brings simplicity, trust and excellent customer service to investing in cryptocurrencies.
Its easy-to-use online platform enables you to securely own the world’s top cryptocurrencies in just a few clicks.
Revix guides new clients through the sign-up process to their first deposit and first investment.
Once set up, most customers manage their own portfolio but can access support from the Revix team at any time.
Remember, cryptocurrencies are high-risk investments.
You should not invest more than you can afford to lose, and before investing, please take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.
This article is intended for informational purposes only. The views expressed are opinions, not facts, and should not be construed as investment advice or recommendations.
This article is not an offer, nor the solicitation of an offer, to buy or sell any cryptocurrency.
To learn more visit www.revix.com.