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Co-CEO, leading GrowthFebruary 3, 2023

How does the Cenoa borderless superwallet work as a bank alternative?

A superwallet like Cenoa gives you access to digital dollars to help you grow your savings and build a more stable financial future.

How does the Cenoa borderless superwallet work as a bank alternative?

As the inflation crisis continues to impact people all over the world, the cost of living is skyrocketing and salaries are simply not keeping up. Even in relatively financially stable countries like the U.S. and the United Kingdom, everyday people are struggling to save. 

And in countries who had greater financial challenges even before the inflation crisis, the situation is even worse. Billions of people in emerging economies are facing currency meltdowns, where their home currencies are being devalued and their savings dwindling to nothing. As a way to try and build a safety net, some people have started storing their savings in U.S. dollars, which are more stable. However, the financial infrastructure in many countries makes buying dollars very difficult and expensive, and people have few opportunities to make yields that can help them build their financial futures. 

This is where the Cenoa Superwallet comes in.

Decentralized finance explained

What is DeFi?

DeFi is short for decentralized finance, which is also known as open finance and peer-to-peer finance. It is an innovative technology built on the blockchain that allows users to send money without the intermediation of financial institutions. Mostly used via DeFi smartphone apps, this technology lets people use peer-to-peer financial networks to control and save their own money in the form of digital dollars. 

What is blockchain investing? 

Blockchain investing refers to putting funds into blockchain-based financial apps and turning it into digital dollars. Digital dollars such as USDC is also known as 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 that is regulated as a licensed money transmitter under U.S. state law just like PayPal, Stripe, and Apple Pay. Circle’s financial statements are audited annually and subject to review by the Securities and Exchange Commission in the US. Circle holds more than $43 Billion in reserves and enabled $9 Trillion in transaction volume. These stablecoins are always on par with the U.S. dollar, and can be a safer bet. 

What’s the difference between a bank savings account and a superwallet? 

A bank savings account holds money that you put into it, usually with a goal in mind, like a new computer, a down payment, or a degree. The average savings account only has a yield of 0.23% per year, and high-yield savings accounts offered by fintechs in the US typically go up to 4%. Unfortunately, in emerging markets banks offer almost no yield on dollars and they don't offer these high-yield savings accounts for dollars. At Cenoa, we don’t think this is enough. 

A superwallet like Cenoa gives you access to digital dollars in the form of stablecoins, and provides a yield of up to 5%. And unlike many DeFi wallets and other traditional investment methods, this 5% yield is fixed. The software is programmed to check and make sure that there is already sufficient capital to pay back the yield before accepting deposits.

How do I make money with a superwallet?

Superwallets like Cenoa run on digital dollars and only uses USDC as digital dollar, which is also known as a stablecoin that it’s always redeemable 1:1 for U.S. dollars.

You can make money with a superwallet by adding your funds to the wallet through trusted financial partners, and holding them in the form of digital dollars. You’ll get whatever yield is promised by your app, and with an app like Cenoa, you can begin earning right away. 

What is Cenoa?

Cenoa is a modern alternative to a bank: it’s a borderless superwallet that lets anyone around the world access digital dollar-based products and start saving. Our goal at Cenoa is to empower anyone to buy digital dollars and earn a fair yield easily, securely, and with zero fees.

How Cenoa works to help anyone save money through blockchain technology 

1. We help users cut out the middleman

Cenoa helps users conduct blockchain-based peer-to-peer transactions. By cutting out the middleman, which is typically represented by a traditional bank, users can access a much higher yield than typical savings accounts, which are almost zero. We choose to charge zero fees, and there’s no minimum withdrawal amount. Plus, anyone can withdraw anytime. 

2. We simplify cryptocurrency and blockchain investing so users can focus on saving

Blockchain investing, and DeFi in general, is complex and highly technical. And without the right security protocols, it can be risky. We took care of building the blockchain software platform so we offer an easy path towards high-yield savings for anyone — and their funds will be held in stablecoins, so they’re always on par with the U.S. dollar. 

3. We educate users with financial savings tips

Within the app, you’ll find helpful financial saving tips. We believe everyone deserves access to financial knowledge, and we know that today, everyone can use an extra boost towards building their financial future.  

Why DeFi wallets are a safe investment option for investors in emerging countries or unstable economies

The Cenoa Superwallet comes with a fixed yield, making it a great option for users wanting to grow their savings in a safe, secure way. It’s blockchain investing, simplified.