Finder’s new crypto-deposit product offering 4% returns sounds alarm for banks

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  • Finder has unveiled a new product that will see Australians get 4 percent returns when they exchange Australian dollars for stablecoins.
  • The new product threatens the status of banks and brings to light the latest warnings from political leaders on cryptocurrencies destabilizing the financial system.

Company platform and money app Finder confirmed the launch of a new crypto deposit product (Finder Earn platform.) This product will be available for Australians who will be able to exchange Australian dollars for stablecoins pegged to the currency. The investors will enjoy a stable 4 percent return for their currency. With the cash raised from the deposits, Finder will invest in global crypto markets where it expects to make even higher than 4 percent returns shared with the investors.

Customers have the ability to deposit up to $10,000 and convert it to the stablecoin (TrueAUD.) This will give the investors an opportunity to get a taste of the cryptocurrency industry without the entire risk that comes from its volatile nature. This will attract investors especially institutional ones who are hesitant to invest in the market. Finder personal finance expert Angus Kidman explained to Stockhead about the product;

Letting them get into that world of crypto, without having to be so exposed to the complexity and the volatility.

Finder is clear that the 4.01 percent return is guaranteed and that investors will get a 14 days notice before any change is implemented.

Related: Finder co-founder Fred Schebesta to give free Bitcoin to vaxxed Australians

Although Finder told customers its new offering is “not a banking product, not a savings account, but [offers]a stable, deposit-like return for pledging fiat into crypto,” the new products sounds an alarm for banks. Just a few months ago, the Reserve Bank of Australia told banks that they must prepare to deal with the possibility of zero or negative interest rates by April 2022. Additionally, the Australian Prudential Regulation Authority (APRA) stated;

it is possible that other interest rates determined in the financial markets could fall to zero or below zero at any time.

Some traditional investors will view the new product as a better alternative to holding their currency in banks that offer little, zero to negative interest rates.

Interestingly, the development also comes as many political leaders warn about cryptocurrencies causing financial instability. The latest one to make this prediction is the former U.S secretary of State, Hillary Clinton. She noted that digital currencies could further destabilize nations and have the power to undermine currencies like the U.S. Dollar.

Read More: Former Secretary of State Hillary Clinton warns of cryptocurrencies destabilizing nations

For now, the Finder Earn platform is onboarding customers that are on the waitlist in which there are reportedly over 11,630 people on it. Of this, executives expect to enroll at least 1,000 by the end of this week. Depending on the reception, the platform expects to continue onboarding more people.

According to Etherscan, there are about 30.7 million TAUD tokens circulating on the Ethereum network.

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