Back in September, cryptocurrency platform Luno announced its intention of going global following its acquisition by a New York-based investment firm. Now the platform has announced its first big feature following said acquisition – a savings wallet.
This feature will work specifically with Bitcoin, and Luno confirms that its users can earn up to 4 percent interest per annum of the crypto they have saved.
Luno is hoping that the addition will prove tempting to current users as it affords the ability for those with Bitcoin to earn passive income on their balance, with little effort and no penalties, the cryptocurrency specialists explain.
“In a time of economic uncertainty, the Bitcoin savings wallet is an alternative for anyone looking to get meaningful savings on their money. Almost 95% of our customers have said they want to earn interest on their Bitcoin, and because of the nature of Bitcoin, we are able to offer a much higher interest rate than traditional savings accounts in certain regions (Europe for example) and comparable to flexible interest offerings in emerging markets such as South Africa,” notes Marcus Swanepoel, CEO and co-founder of Luno
“As traditional investments have shown vulnerability at a time of crisis during 2020, there has never been a better time to benefit from a currency that does not rely on a healthy economy to determine its value,” he adds.
The platform‘s recently launched feature has been brought to market given the behaviour of users, says Luno, with many choosing not to part with their Bitcoin and hold onto it for the long-term, according to the company.
“Less than 5% of Luno’s South African customers plan to sell their Bitcoin in the next six months, in fact most plan to buy more, so the savings wallet means they can earn interest by simply doing what they were planning to with their Bitcoin,” explains Marius Reitz, Luno’s GM for Africa.
“More than 55% of South African customers indicated that they do not have investments other than crypto. It’s important to diversify investments given how new the Bitcoin industry is. Those who hold Bitcoin will no doubt find the interest earning potential attractive,” he concludes.
Given how chaotic 2020 has been to date, it should be interesting to see for many Luno customers go for the new solution, as well as how much passive income they earn as a result.