Why I moved to save in stablecoin over bank saving account.

As it is that every decision we make has effects on our finance, we need to be frugal with all our decisions.

Many countries in the world are complaining of inflation and devaluation of currencies and we all are looking for a way that our money will remain valuable and worth it figures. In a country like Nigeria, saving in the dollar will be a good way to stay safe, but it is difficult for everyone. Billionaires get it cheaper and other people have to buy way higher. Then saving it in the bank may later come with different stories. The bank might later have reasons they can’t pay the customer back in dollars even after saving in the dollar. So the best way to be safe right now is the stablecoin.

The primary reason people save money is safety, fast liquidity, and convenience. Now, there is no how you would put all your funds in investments because you will need money every day and will probably need some emergency funds. So, there must be some money for fast liquidation.

I wrote a blog where I analyzed the money I had in a Bank since 2016 and the interest I got in 6 years. $10 could not get an interest of $1 in 6 years. And in the proper calculation, I received 0.06% a year; it has also been on the consistent devaluation. We are giving a lot to the banking system in the name of saving. No one will intentionally give anyone a loan for 0.06% a year as interest, but we give it to the bank.

Let’s look at the metrics: safety, fast liquidity, and convenience

Safety: People do not have enough ability to keep their funds to themselves and we believe leaving money in the bank gives it more safety because of the large securities available in the bank.

Fast Liquidity: Money available in a saving account is very easy to collect and use with no much process. So money saved in the bank is because of fast liquidity.

Convenience: Getting a saving account takes a few processes. Also, banks create a system like the USSD and apps to move money around.

All the metrics now are better with stablecoins. There is safety in funds, as most of them could be stored in secured wallets. It is also easy to liquidate, plus, pretty convenient to move around. Most people prefer to transact in stablecoins now than any other crypto.

Further, there are DEFI that gives above 10% APY on stablecoin which is pretty cool. I have no reason to save my money in the bank again when I can liquidate easily, also in stablecoin and even get more benefits holding stablecoin.

These are my opinions and you should do your research.

Thanks for reading!

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