With Luno, South Africans can now earn interest in Bitcoin and Ethereum

Cryptocurrency Exchange Luno announced that its customers can now earn interest on Bitcoin, Ethereum and USDC.

These currencies have been added to the platform’s savings exchange, meaning the company’s seven million customers can now earn up to 4% interest per year on Ethereum holdings and up to 7.6% on their USDC balances. Interest is earned and paid in cryptocurrency.

According to Luno, this solution offers a flexible way of generating passive income from cryptocurrency holdings.

It has also been found to be almost double the rate that the major banks in South Africa offer on flexible savings accounts (between 1% and 4% per annum).

Customers earn interest immediately and receive monthly interest payments. There are no hidden fees, no fixed terms and no minimum deposits.

Customers also have 24/7 access to their crypto as part of Luno’s savings wallet service.

This expands Luno’s existing Bitcoin savings wallet, launched five months ago and adopted by nearly 250,000 users. So far, Bitcoin has earned over $ 500,000 worth of interest.

“Luno research last year showed that more than a third of respondents (35%) deserve no interest at all in their traditional cash savings, so expanding savings options and making saving easy and accessible is a priority for us “said Luno Africa GM Marius Reitz.

“The same research from last year found that 54% do not earn interest on their checking or savings accounts, while 40% have no confidence in their local currency.”

Reitz added that a high percentage of South Africans who own cryptocurrency do so for speculative investment purposes, with the majority holding their crypto for the long term.

“If your crypto investment strategy keeps your crypto long-term (HODLing in crypto-language), the savings wallet will bring you additional interest in what you have already done,” Reitz said.

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