Technological advancements have changed every aspect of life over the last 20 years. Finance is no different. The introduction of decentralized currencies created new opportunities for the average person seeking to generate wealth over time. Here’s how you can be your bank in 2023.
Why People Want to Be Their Bank
The exclusivity of the market led to many issues which culminated in the recent bank failures over the last few decades. Governments had to borrow money from global lenders to support these banks to prevent a major collapse of the final system. However, the remedy was temporary and the root causes of the banking failure such as centralization and corruption still exist today. Here are some of the top reasons why it makes sense to be your own bank.
More Transparency
The centralized nature of the banking sector leaves the majority of people out of the loop. There is little to no way for the average person to gain access to banking documentation without the bank providing it. As such, the model is skewed towards those in control. They can alter the numbers using their centralization to hide activities.
In comparison, blockchain networks used to support today’s advanced DeFi banks are completely transparent. Anyone can watch the entire network in real-time using a free blockchain explorer. This structure means that you don’t need to rely on a third party to see vital information such as account balances, past transactions, and smart contract addresses.
Permissionless
People are realizing that they need to be in control of the assets they secure wealth into to prevent losses. It’s already very difficult and expensive to send funding internationally using the current money transfer system. The large payment processors and sensors have created artificially high fees leveraging their position in the market.
They have used this position to silence or finally destroy anyone that has gotten in their way. It’s sad to think that there are billions of people in the world who are unable to access the most basic financial services because their nation disagrees with another nation or they lack paperwork.
DeFi networks provide permissionless access to financial services. You can send funding internationally in seconds using a personal bank. Best of all, it’s far cheaper to send cryptocurrencies and blockchain assets versus fiat currency. The average for sending funding in fiat internationally ranges from 7-12%.
Higher ROIs
The centralized nature of the traditional banking sector has led to price setting. The bankers pay out the minimal interest on holdings while using your currency as loans that accrue high yields. This structure isn’t fare to the consumer who is now losing money due to inflation outpacing the low APYs paid out to fiat savings accounts.
DeFi banks pay out high yields in comparison to fiat bank accounts. They don’t have the high overhead and can pay out much faster and more frequently For example, the national average for fiat accounts is 0.03%. The DeFi Bank, The META VAULT, pays out 10% APY. This high payout gets multiplied by the compounding returns.
Better Long-Term Store of Value
Fiat currency is fundamentally flawed. For one, it’s not wise to store our value in an asset that can be printed at will by people who may not be financial experts or have your best interest in mind. There are too many factors that have exposed fiat currency as the fragile store-of-value that it is. There are much better options such as gold or blockchain assets.
There are even blockchain assets that leverage gold and gold-related assets as reserves to remain stable. These networks provide a better long-term store of value characteristics compared to fat currency. They can avoid inflation as well. Projects like META 1 Coin use the self-appreciating aspects of gold to ensure steady long-term value growth over time.
What it Used to Take to Be the Bank
It’s no secret that the banking sector is very central. There is a reason you probably don’t know anyone who owns a bank at this time. In the past, providing basic financial services required a massive undertaking which included completing the charter and FDIC approval process.
The steps to this process required a lot of funding, patience, and a high level of advanced knowledge regarding the inner working of large financial institutions. All of these steps meant that the average person would never be able to secure banking services without a third party.
How Technology Has Made it Easier to be the Bank
The introduction of blockchain technology changed everything. For the first time, there was a reliable digital asset that didn’t suffer from double send issues or other problems that plagued earlier attempts of making stable digital currency. Today, blockchain technology has expanded in its functionality and usability
DeFi Opens the Door
The DeFi movement was inspired by Bitcoin’s dream of a more transparent economy. DeFi platforms are service providers that eliminate centralization from the equation. They function using smart contracts rather than personnel. This structure means that there is no prejudice or human error when the system operates optimally.
The DeFi Movement has inspired developers to be more creative in the market. There are now more features than ever. You can secure returns in a variety of ways when you enter the DeFi space. Here are some of the DeFi banking features that have helped people make the move to become their own bank in 2023.
Key DeFi Features that Help You Save
There are some DeFi features that have become standard on most platforms. Additionally, many features have helped the entire sector gain new users. The main thing to remember about DeFi platforms is that the best ones will provide low-risk passive income options to users. Here are the best options to enjoy when you’re the bank.
High Yield Savings
The first feature any DeFi banker needs to become familiar with is high-yield savings accounts. These digital accounts are one of the easiest ways to secure respectable APYs. The best options will include easy onboarding options that will convert your fiat into crypto seamlessly.
The Onramper portal is a prime example of how DeFi banks have made it easy to join their ecosystems. The Onramper portal provides support for +50 fiat currencies. It can convert fiat into META 1 Coins and other cryptocurrencies in minutes. The process is safe and makes it easier for new users to enter the market.
High Yield savings accounts provide you with consistent and reliable returns that can add up over time. The best part about this approach is that there is a minimum risk of losing your original asset. Additionally, you already know what your returns are going to be based on your deposit.
P2P lending
The peer-to-peer lending movement is another chapter of DeFi that has been exciting to watch expand. These networks provide a way for people to lend out their unused crypto securely and receive returns in the form of interest. The bank used to do this task and secure a healthy return. In a DeFi bank, you’re the one earning the ROI.
P2P lending systems use blockchain features such as interest-bearing pools to enable users to secure interest from borrowers regardless of their repayment date. This structure is very popular in the market because it creates large liquidity pools that make it possible to lend to larger borrowers.
It’s much easier to qualify for a DeFi bank loan versus your traditional bank. For one, there is no paperwork required, In a DeFi ecosystem, everything is run by smart contracts. As such, there is no discrimination or bias of any kind. The only requirement is to meet the collateralization limits.
Notably, most of these systems require over-collateralization as part of their strategy to remain solvent. Overcollateralized loans require you to put up more than you want to borrow as collateral. Recently, there have been some credit-based DeFi banking p2p systems entering services. These networks interlace the traditional and DeFi approaches to open the door for more commercial clients.
Stable assets are Making Crypto Appealing to the Masses
The degradation of fiat currencies around the globe has shed light on many of the issues that savers must overcome if they want to achieve their goals. Fiat currency is not ideal for long-term store-of-value tasks. For one, it’s designed to degrade in value over time. The more money in the market and the less value each bill holds in terms of buying power.
The introduction of stablecoins helped to provide DeFi networks with more appeal to the masses. These digital assets leverage reserves to decouple from the market’s volatility. Stablecoins are now an everyday part of the crypto market. It would be hard to imagine trading without the use of fiat base stablecoins for quick escapes.
Stablecoins did help improve DeFi’s appeal and effectiveness. However, the introduction of stablecoins upped the ante significantly. This asset was designed to be more than just stable. They were specifically designed to store wealth over time and appreciate. The first safehaven asset to enter the market was the META 1 Coin.
META 1 Coin Feature that Makes it Ideal for Personal Banking
MEAT 1 Coin has a variety of features that make it the perfect asset for personal banking. For one, the network leverages a basket of gold-related assets to remain stable, This structure means that the token is stable from both crypto and gold fluctuations. Addiotnlly, it provides the token with self-appreciation.
The META 1 Coin differs from other god-backed stablecoins in its core protections. In the past, developers would make stablecoins and only focus on how to derive value for the project. Little attention was given to the main reason why these assets fail. Safehaven assets flip the model on its head with add direct focus on the community and its future.
Protect the Community
As your bank, you want to deal with assets that can stand the test of time. The META 1 Coin integrates a variety of protections that make it the ideal selection for the job. For one, the network was built from day one to serve the people and not banks or governments.
The developers have gone as far as to ban all corporations from trading the token. This step has some advantages that are worth mentioning. For one, it prevents companies from coming in and taking over the network. It also reduces trading volume which makes the entire network more stable by eliminating volatility.
Every trader must prove they are a human being before they can enter the METANOMICs DeFi ecosystem. This requirement ensures that government agencies or trading firms infiltrate the network. These protections are topped off with a $5M token limit. This limit eliminates corporations from sneaking in disguised as regular traders.
Stability Begins with the Asset value
Another reason why the META 1 Coin is the most stablecoin yet is its asset protection mechanism. Baked into the token is a requirement to meet the minimum asset value to complete a trade. This requirement means that there is no way to conduct pump-and-dumps.
Eliminating whales and protecting the asset value ensures that META 1 Coin can appreciate over time. The token has already secured 1.35% in value since the crypto winter began. Crypto bankers have taken note and the META VAULT has become a popular option for those seeking to be their bank in 2023.
Be Your Own Bank in 2023
Now that you understand all the advantages that you gain through DeFi banking you are ready to join the revolution. Blockchain assets such as safehaven tokens provide the best alternative to fiat currencies in terms of a store of value. As such, you can be your own bank and secure real returns in 2023.