Vella Finance, a Nigerian fintech startup, has recently announced its decision to discontinue its crypto-related services and instead concentrate solely on providing banking services to small and medium-sized enterprises (SMEs). Co-founder Tolu Adedayo cited business reasons for this strategic shift.
Vella Finance's Decision to Drop Crypto Services
According to a report by Techcabal, Vella Finance informed its users and subscribers on October 23 that it would cease offering crypto-related services from October 30 onwards. Adedayo explained the rationale behind this decision, stating that they were fully embracing SME banking and that offering an end-to-end banking system would better serve their existing business customers. He further expressed his belief that simultaneously providing cryptocurrency and banking services is impractical.
Nigeria's Growing Interest in Crypto
Vella Finance's decision to discontinue crypto-related services comes at a time when Nigeria is witnessing an increasing interest in digital assets such as bitcoin and tether. A recent Chainalysis report highlighted Nigeria as one of the six countries in the world's top 50 where crypto transaction volume has grown year-over-year. Additionally, the country's rapidly depreciating local currency has further fueled interest in crypto assets.
Vella Finance's Future Plans
Despite dropping its crypto services, Vella Finance has revealed its intentions to introduce new features that will solidify its position in the business banking space. By leveraging user and transactional data, the fintech startup aims to enhance its offerings and cater more effectively to the needs of SMEs.
Vella Finance's decision to shift its focus from crypto-related services to SME banking reflects its commitment to adapt to the evolving needs of its customers. By providing an end-to-end banking system, the Nigerian fintech startup aims to better serve small and medium-sized enterprises and strengthen its position in the business banking space.
What are your thoughts on Vella Finance's strategic shift? Share your opinions in the comments below.
Frequently Asked Questions
What is a Precious Metal IRA?
An IRA with precious metals allows you to diversify retirement savings into gold and silver, palladium, rhodiums, iridiums, osmium, or other rare metals. These precious metals are extremely rare and valuable. These are excellent investments that will protect your wealth from inflation and economic instability.
Bullion can be bought via various channels, such as online retailers, large coin dealers and grocery stores.
With a precious metal IRA, you invest in bullion directly rather than purchasing shares of stock. This allows you to receive dividends every year.
Precious metal IRAs are not like regular IRAs. They don't need paperwork and don't have to be renewed annually. You pay only a small percentage of your gains tax. You also have unlimited access to your funds whenever and wherever you wish.
Is buying gold a good retirement plan?
Although it may not look appealing at first, buying gold for investment is worth considering when you consider the global average gold consumption per year.
Physical bullion is the most popular method of investing in gold. There are many ways to invest your gold. It's best to thoroughly research all options before you make a decision.
If you don’t need a safe place for your wealth, then buying shares of mining companies or companies that extract it might be a better alternative. If you need cash flow from an investment, purchasing gold stocks is a good choice.
You can also invest your money in exchange-traded fund (ETFs), which give you exposure to the gold price by holding securities related to gold. These ETFs usually include stocks of precious metals refiners or gold miners.
What are the fees associated with an IRA for gold?
The Individual Retirement Account (IRA), fee is $6 per monthly. This includes account maintenance fees and investment costs for your chosen investments.
If you want to diversify, you may be required to pay extra fees. The fees you pay will vary depending on the type of IRA that you choose. Some companies offer free checking, but charge monthly fees for IRAs.
Most providers also charge an annual management fee. These fees range between 0% and 1 percent. The average rate for a year is.25%. These rates can often be waived if a broker, such as TD Ameritrade, is involved.
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- Yahoo Finance provides information about Barrick Gold Corporation's (GOLD) stock price, news, quote, and history.
- 7 U.S. Code SS7 – Designation of boards for trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement account
The History of Gold as an Asset
From the ancient days to the early 20th Century, gold was a common currency. It was accepted worldwide and became popular due to its durability, purity, divisibility, uniformity, scarcity, and beauty. Because of its intrinsic value, it was also widely traded. However, since there were no international standards for measuring gold at this point, different weights and measures existed worldwide. For example, one pound sterling in England equals 24 carats; one livre tournois equals 25 carats; one mark equals 28 carats; and so on.
The United States started issuing American coins in the 1860s made of 90% copper and 10% zinc. This resulted in a decline of foreign currency demand and an increase in the price. At this point, the United States minted large amounts of gold coins, causing the price of gold to drop. They needed to pay off debt because they had too much money coming into circulation. To do so, they decided to sell some of the excess gold back to Europe.
Because most European countries did not trust the U.S. dollar, they started accepting gold as payment. However, after World War I, many European countries stopped taking gold and began using paper money instead. Since then, the price of gold has increased significantly. Even though gold's price fluctuates, it is still one of the most secure investments you could make.
By: Terence Zimwara
Title: Vella Finance Drops Crypto Services, Shifts Focus to SME Banking
Sourced From: news.bitcoin.com/nigerian-fintech-startup-vella-finance-drops-crypto-related-services/
Published Date: Tue, 31 Oct 2023 11:30:26 +0000
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