Report: Chinese Company Launches Digital Currency Insurance Product

Report: Chinese Company Launches Digital Currency Insurance Product

The Suzhou branch of the Chinese insurance company China Pacific Insurance, together with the 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. Insurance Product ‘Guarantees’ Security of Digital Wallets

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

Besides helping to widen the use cases of the digital yuan, according to the report, the new insurance product guarantees the “security of the personal digital currency wallet.”

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 raised the importance of having an appropriate insurance product available to users of the e-CNY, the report said.

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

Starting in 2020, China Pacific Insurance’s Suzhou branch has been expanding the use of the digital yuan by way of increased cooperation with stakeholders such as the government, banks, and B-end and C-end customers. The report said these stakeholders are tasked with the job of collecting insurance premiums, paying indemnities, and issuing employee salaries and benefits. Tags in this story China Pacific Insurance, digital wallets, Digital Yuan, e-CNY, Soochow University Business School, Yuan

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

Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route. Sam Bankman-Fried Wants to Start New Business to Repay FTX Users — "I"m Going to Try if I Can" FEATURED | 21 hours ago Rock Legend Gene Simmons Is Holding Crypto Despite Market Sell-Offs and FTX Collapse FEATURED | 2 days ago

Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articlePanther Completes the Decentralized Launch of Its Protocol’s v0․5, a DAO-Led Effort Next articleDOGAMÍ Secures $14M Total Funding in Seed Round for Developing the First Web3 Mobile Game for Mainstream Audiences Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItRipple CEO: SEC Lawsuit Over XRP "Has Gone Exceedingly Well"

The CEO of Ripple Labs says that the lawsuit brought by the U.S. Securities and Exchange Commission (SEC) against him and his company over XRP "has gone exceedingly well." He stressed: "This case is important, not just for Ripple, it’s ... read more.Draft Law Regulating Aspects of Crypto Taxation Submitted to Russian Parliament Fed"s Bullard Wants to Raise Bank Rate to 3.5% by Year"s End, Hints at 75 Basis Point Rate Hike FBI Issues Alert Concerning Malicious State-Sponsored North Korean Hackers Targeting Crypto Firms Survey: Adoption in Argentina Grows, With 12 out of 100 Adults Having Invested in Crypto