This morning, River unveiled its Bitcoin Interest on Cash feature offering a 3.8% interest rate — paid in bitcoin — for the dollars kept in the platform’s custody, which is insured by the FDIC up to $250,000.
This yield is similar to what you might receive from a high-yield savings account at online banks like Ally, but with River, you’re earning in bitcoin.
If you’re like me, a Bitcoin fan who values having a decent cash reserve for emergencies, this is quite an appealing offer. I maintain one of those high-yield savings accounts at Ally, and I keep telling myself that I’ll use the monthly interest to purchase bitcoin, but I seldom follow through.
Thanks to River, I can now pretty much automate that process, enabling River to convert that unwanted fiat yield into bitcoin for me at the end of each month.
(In reality, I can’t take advantage of this because I reside in New York State, which is one of the only two U.S. states where River cannot serve clients. New York has a set of regulations known as the “BitLicense,” making it fairly challenging for Bitcoin startups to operate in this state, but I digress.)
There are no monthly fees or minimums required to start using this feature, and users can withdraw their cash whenever they wish.
This isn’t just something for Bitcoin enthusiasts to applaud; it’s also an excellent method to introduce newcomers to Bitcoin, many of whom are hesitant to invest due to its price fluctuations. Now, they don’t need to buy bitcoin; they can simply earn it by holding onto the currency they’re more accustomed to.
