Luno, one of the largest exchanges in Africa, has launched a Luno savings wallet allow customers with bitcoin to earn passive income on their balances.
The launch of the wallet follows a research conducted that informed the company on the need for the product.
The Luno research found that:
- 95% of Luno customers want to earn interest on their bitcoin
- 40% of those surveyed lacked confidence in their local currency
- 95% of active South African customers indicated they would use a savings wallet that offered interest on their bitcoin balance
- 55% of South African customers do not have investments other than crypto
SEE ALSO: Luno African Exchange Fully Acquired by Global Blockchain Investment Enterprise, DCG
Some of the key features of the Luno bitcoin savings wallet include:
- Up to 4% interest per annum on your bitcoin balance – There are no fixed terms, no admin fees, and your funds can be moved into your normal wallet whenever you need them
- Interest is paid on the first of the month – You can choose to leave your earnings in your savings wallet to compound and grow exponentially, or you can withdraw straight away
Saving 1 BTC at an interest rate of 4% per annum would generate the customer 0.04 BTC per annum (approx. $40 at the time of writing).
Attention all hodlers, #crypto traders and nocoiners 📣
The Luno #BTC Savings wallet has officially launched! 🚀
Let your #bitcoin work for you and earn interest on your holdings 🥳
Read more about how it works 🎉 ⤵️https://t.co/l7Dk2Oxm6W pic.twitter.com/zqwzxiW9m1
— Luno (@LunoGlobal) October 19, 2020
Speaking about the new wallet service, Marcus Swanepoel, CEO, Luno, said:
“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.
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.
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.”
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