Huobi’s cryptocurrency-based savings product has opened the doors to financial empowerment through savings and impressive interest rates to a section of the global population once removed from banking benefits.
Cryptocurrency has long been touted as a tool for the 1.7 billion-strong unbanked population globally with its inclusive and more flexible nature. The use of cryptocurrencies for the unbanked and others in struggling markets, is clear and obvious in terms of transactional usage, but with Huobi Crypto Savings, there is new financial empowerment.
The set-up for the new accounts with Huobi Crypto Savings is flexible, enabling users to make deposits and withdrawals at any time. Interest will be paid out daily to users’ crypto savings accounts, with support for real-time settlement.
The current annual yield for deposits in USDT is 8 percent, while deposits in Bitcoin yield 3.5 percent. For “newbies,” Huobi is offering a specialized account rate with an annualized yield of 88% for the first week.
Ciara Sun, the vice president of Huobi Global Markets, has said that there is a clear and obvious demand for such a product, especially for those who have been excluded from the traditional banking sector.
Sun has said that the momentum behind the new product was user-driven, claiming:
“We have a lot of users who want to keep their assets in one place and want to earn a good profit worry-free. We hear their demand loud [and] clear, we react to it fast.”
Big in Nigeria
Huobi spoke with some of its customers in Nigeria about the impact a crypto savings product and the use of USDT and BTC has on their day to day lives.
Daniel Bishuddha, 27, is a freelance community manager. He said:
“I use cryptocurrencies and make transactions with my friends and families. The bank we use can be occasionally congested so sometimes it takes 1-3 days to successfully transfer the money,”
“It means I need to run to the bank personally to check for the notification and see if the transaction is successful. Crypto transfer is much more convenient. 70% of my income is paid in cryptocurrencies. ”
Folaranmi Oladipupo, 44, another Freelance community manager, added:
“50% of my income is paid in cryptocurrencies and I use 20% of them to purchase food, groceries and electronic products overseas in crypto.”
“Many stores online do accept cryptocurrency as a form of payment now. For example, I purchased a laptop with USDT from the U.S. last year. And clothing outside of Nigeria”
Benedict Sayon, 37, a copywriter, said:
“I freelance online and the crypto industry definitely creates a lot of job opportunities for us. And USDT definitely forms a big part of my income. I can exchange the USDT to Naira at local exchanges for daily expenses and many people here in Nigeria don’t like to save the money in the bank due to low interest and negative interest rate. I am excited that Huobi decided to launch the crypto savings product, so the money is always under constant flow to drive profit.”
Currently, the product is restricted in some countries and as such, residents of China, Hong Kong, Japan, Singapore, the United States, Germany, Canada and the United Kingdom are, for now, not eligible for the offering.
Additionally, Huobi’s new crypto savings product will be available to roughly 1,000 users. Each individual account will have a 3,000 Tether (USDT) limit — or the equivalent value in Bitcoin (BTC).