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.<\/p>\n
The truth is, today, there is an alternative to traditional banks. <\/em><\/p>\n 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.<\/p>\n 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.<\/p>\n But what if we could eliminate all of that and return those profits back to the customers? Sounds like a fantasy, right? Today it\u2019s a reality, thanks to the blockchain revolution.<\/p>\n Blockchains are computer networks that facilitate distributed ledgers. They are like banks with no headquarters, no offices, no employees, and no coffee pots.<\/p>\n Blockchains are \u201cdecentralised\u201d 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.<\/p>\n 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.<\/p>\n 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.<\/p>\n Sure, you could stuff your cash in a mattress instead of a bank, but you\u2019d be losing money. The South African rand has an annual inflation rate of 5.9%.<\/p>\n That means in ten years\u2019 time, your money\u2019s buying power would be almost cut in half. That\u2019s downright painful.<\/p>\n Alternatively, you could put your money in a regular savings account. But it still won\u2019t keep up with inflation. South African savings accounts offer an average of 4.88% interest.<\/p>\n 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.<\/p>\n Holding U.S. dollars would put you ahead of the game by a couple of percent over holding ZAR in a traditional savings account.<\/p>\n There\u2019s 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.<\/p>\n It might sound too good to be true but DeFi makes it possible.<\/p>\n Don\u2019t let the idea of investing in cryptocurrency scare you. South African businesses such as Revix<\/strong><\/a><\/strong> offer high-interest stablecoin accounts. Revix\u2019s Savings Vaults<\/strong><\/a><\/strong> pay clients a whopping 12% annual interest.<\/p>\n Additionally, because the accounts are pegged to the U.S. dollar, the inflation rate is lower than holding ZAR. Win-win.<\/p>\n But how can a stablecoin savings account possibly pay 12% interest when banks pay only 5%?<\/p>\n \u201cThe answer is that with stablecoins there are no traditional banks involved,\u201d says Brett Hope Robertson, Head of Investments at Revix.<\/p>\n Anyone can take advantage of the superior returns of stablecoins without having to be familiar with cryptocurrencies. The only difference you\u2019ll notice is the higher interest you\u2019ll be earning.<\/p>\n Revix<\/strong><\/a><\/strong>, the Cape Town-based investment platform (backed by JSE listed Sabvest), offers savings accounts<\/strong><\/a><\/strong> using US dollar stablecoins called USDC which was developed by Circle and Coinbase.<\/p>\n Both companies have achieved regulatory compliance in South Africa, and USDC is fully backed one-to-one with US dollars.<\/p>\n It\u2019s a safe place to store your savings in USD while earning 12% interest.<\/p>\n Moreover, the Revix USD Savings Vault provides easy exposure to U.S. dollars without having to deal with Forex desks.<\/p>\n Starting on the 6th of May, Revix USD Savings Vault<\/strong><\/a><\/strong> customers are eligible for the 12% annual percentage yield (APY) when locking funds in the USD Savings Vault<\/strong><\/a><\/strong>.<\/p>\n The minimum balance is 100 USDC and there\u2019s a 30-day minimum lockup period. Other Terms and Conditions apply.<\/p>\n Existing Revix<\/strong><\/a> vault customers will be automatically upgraded to this new version of the USD Savings Vault<\/strong><\/a><\/strong>.<\/p>\n Taking advantage of this 12% offer couldn\u2019t be easier:<\/p>\n It\u2019s that simple.<\/p>\n With 12.00% APY on a US dollar account, Revix<\/strong><\/a><\/strong> offers a higher annual interest rate than any traditional South African savings bank.<\/p>\nDeFi has got banks worried<\/h3>\n
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<\/a><\/p>\n![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2022\/05\/Bank-vs-SV-rates2.png\")
<\/a><\/p>\nStablecoins to the rescue<\/h3>\n
How South Africans can earn 12% interest<\/h3>\n
Earn 12% annual interest with Revix<\/h3>\n
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<\/a><\/p>\nHow to get started<\/h3>\n
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About Revix<\/em><\/strong><\/h3>\n