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Co-CEO, leading GrowthFebruary 16, 2023

Digital dollars are the latest way to grow your savings from emerging countries — learn more

Learn all about high-yield global DeFi investing options from emerging countries.

Digital dollars are the latest way to grow your savings from emerging countries — learn more

A note: Please kindly note that Cenoa does not provide investment, tax, legal or accounting advice; and this material has been prepared for informational purposes only. You should consult your own advisors before engaging in any transaction. You can find detailed disclaimers on Cenoa’s website.

Why the existing financial system doesn’t work in the current global economy

Inflation and local currencies plummeting in value are leaving billions of everyday people unable to save and build their financial futures. A combination of global challenges and outdated financial systems have led to one of the most challenging economic environments the world has seen in decades. 

2022 saw the cost of living skyrocket all over the world, and especially in emerging markets, it has led to financial challenges on top of an already shaky economic foundation. Currency meltdowns and historic inflation are leaving people with empty savings accounts and an inability to improve their financial future. Many are looking to save money in the relatively stable currency of U.S. dollars. 

However, financial institutions around the world make it very difficult and expensive to buy U.S. dollars, and they also provide little to no yield. These systems have worked in the same way for a long time, and haven’t caught up to modern technology. Existing banking infrastructure uses inefficient procedures and pays too many intermediaries, which becomes expensive to the end user. 

We believe that banks all over the world aren’t doing enough to help the people they serve. Offering yields of 0.23% on average is not nearly enough, and won’t help people get set up for success. That’s why we built the Cenoa Superwallet. It provides an easy way for anyone, anywhere to buy digital dollars that are always on par with USD, also known as stablecoins. 

How do digital dollars work?

Cenoa only uses USDC as digital dollars. USDC is a fully-reserved stablecoin, where every digital dollar of USDC on the internet is 100% backed by cash and short-dated U.S. treasuries, so that it’s always redeemable 1:1 for U.S. dollars. 

USDC is issued by Circle, a fintech company that holds more than $40B in reserves and has supported $9T+ in transaction volume. Circle is licensed as a money transmitter by the New York State Department of Financial Services under U.S. state law the same way that PayPal, Stripe, and Apple Pay are. Circle’s financial statements are audited every year and subject to review by the U.S. Securities and Exchange Commission (SEC) — you can find previous reports, monthly attestations, and filings from Circle on their website.

Global DeFi investing strategies

DeFi, or Decentralized Finance, or Open Finance, or peer-to-peer finance, is a new financial technology ecosystem built on the blockchain. Digital DeFi wallets allow people to conduct peer-to-peer transactions without a bank as an intermediary, and lets them buy digital decentralized currency. 

DeFi investing can be complicated and highly technical, and not every platform is built equal in terms of security and risk. At Cenoa, we took care of the background technical work and the security, and all funds are held in stablecoins, so you won’t need to worry about crypto valuation swings. We also don’t charge any fees, unlike traditional banks.

Here’s how to start investing with Cenoa:

1. Keep extra savings in a DeFi super wallet

There’s no reason to jump in with both feet: start small and try putting some of your extra savings into a Cenoa Superwallet. Even just a few dollars a month can start to add up with our excellent yields of up to 5%. 

2. Invest in digital dollars

Holding your extra savings in the form of stablecoins lets you take advantage of the stability of the U.S. dollar from outside of the U.S. If digital dollars are stronger and more stable than the currency of your own country, your savings can grow with lower risk. 

How do you buy digital dollars?

It’s easy! To make your first digital currency investment, first check if Cenoa is available in your area. Then sign up for a Cenoa Superwallet account, add your funds using our trusted financial partners, store them as stablecoins, and watch them grow — both through Cenoa’s yield of up to 5%, and as the digital dollars stay strong.

Benefits of investing in digital currencies

When a local currency becomes weaker, savings accounts dwindle to nothing. Properties lose their value, and plans for the future are put on hold. By saving a little bit of extra money in the form of a stable digital currency like digital dollars, investors in emerging markets can see their savings stay level (and even grow) — helping them create a little financial cushion for challenging times.  

Risks of investing in digital currencies

Not all digital currencies are created equal. For example, some stocks and cryptocurrencies see rapid changes in valuation, which can make investing in them extremely risky. That’s why putting your life savings into higher risk investments isn’t recommended. 

How digital dollars help everyone access stable investments

Holding savings in U.S. dollars has become a common practice for people in underserved countries with serious economic challenges. But traditional banks and local financial structures make it hard to get a hold of U.S. dollars without high fees. 

By investing in digital dollars that are on par with USD, people everywhere can grow their savings accounts and start investing in their financial future. Start today with Cenoa.