Chinese Company Launches Digital Currency Insurance Product – Featured Bitcoin News

The Suzhou branch of Chinese insurer China Pacific Insurance, together with Bank of Communications, recently announced the launch of a digital currency account insurance product. The launch comes at a time when the number of personal digital currency wallets created in the Chinese city of Suzhou alone now exceeds 30 million.

The insurance product ‘guarantees’ security for digital wallets

According to a report, the Suzhou branch of China Pacific Insurance together with the Bank of Communications branch in the same city recently launched what has been described as the Asian country’s first digital currency insurance product for central banks. It added that the launch “lays the foundation for continuous and in-depth promotion of digital renminbi.”

In addition to helping to expand the use of the digital yuan, the new insurance product guarantees “the security of the personal digital currency wallet,” according to the report.

As explained in the report, Suzhou, a major city in China’s Jiangsu Province, is one of the cities selected to participate in the digital renminbi pilot. To date, more than 30 million digital currency or e-CNY wallets have been created. It is this growth in the number of wallets that has increased the importance of having an appropriate insurance product available to e-CNY users, the report said.

To explain how the insurance product works, the report states that if personal funds are stolen or if a wallet’s password is compromised during the warranty period, the affected wallet user will be able to make a claim. Since the launch of the insurance product, over 500 people, including students of Soochow University Business School and employees of Zhangjiagang government agencies, have signed up.

As of 2020, China Pacific Insurance’s Suzhou branch has expanded the use of the digital yuan through increased cooperation with stakeholders such as the government, banks, and B-end and C-end customers. The report said these stakeholders are tasked with collecting insurance premiums, paying claims and issuing employee wages and benefits.

What are your thoughts on this story? Let us know what you think in the comments section below.

Terence Zimwara

Terence Zimwara is a Zimbabwean award-winning journalist, writer and author. He has written extensively about the economic problems in some African countries, as well as how digital currencies can provide Africans with an escape route.