The Luno cryptocurrency exchange has launched a new product known as the ‘Bitcoin Savings wallet’ which will help the users to earn passive income on Bitcoin holdings.
The launch by Luno was something that was considered necessary considering the popularity of the past few years as well as to overcome the economic uncertainty created by the pandemic. We can observe that several nations around the world have slashed their interest rates while there are some which have even brought it to negative. This only means that the savers do not have many options in their hands.
The need for a savings wallet
Luno exchange which is owned by CoinDesk’s parent company Digital currency group has clearly implied that the users can withdraw their bitcoin from the saving wallet any time and the interest will also be calculated on the first of every month.
Luno carried out a survey earlier this year and more than one-third of respondents said that they were not earning any interest on their cash savings at all. More than half of the respondents further added that they are not earning any interest at all through their current or savings account. The CEO of Luno and its co-founder Marcus Swanepoel said that the wallet was launched when about 95% of the customers indicated that they would like to earn interest on their holdings.
In such a situation, a BTC savings Wallet is a secure alternative for anyone who is now looking forward to consolidating some savings. The company will be able to offer higher savings as compared to the traditional savings account due to the nature of Bitcoin. With traditional investments vulnerable to the hilt, the product comes at the right time because fundamentally speaking it does not need the support of a healthy economy to determine its value.
BTC Savings wallet – Everything that the user wants
The interest that the holders will be earning in the BTC savings wallet is currently targeted at 4% but this will vary according to the market conditions. The funds which will be parked in the savings wallet will be lent to Luno’s chosen lending partner to generate a fair return. The percentage will be determined based on the supply and demand factors.
The organization has partnered with Genesis in order to initiate the services of the wallet. Genesis operates under the Digital currency group umbrella and is considered as the world’s largest lender of digital assets. They have been in existence since 2013 and are touted to help clients increase their capital efficiency over a period of time.
As for the BTC wallet, there are no admin fees or fixed terms. The funds can be moved into the user’s normal wallet whenever they need it. Luno BTC savings wallet is currently unavailable in Malaysia but Luno is working to achieve it. Also, the Luno BTC Savings Wallet is available through the Luno web platform and the latest version of the Luno App (version 7.1.0).