Chinese company launches digital currency insurance product

The Suzhou branch of Chinese insurance company China Pacific Insurance, in collaboration 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.

An insurance product “guarantees“the security of digital wallets

The Suzhou branch of China Pacific Insurance and 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. She added that the launch “lays the foundation for continued and thorough promotion of digital renminbi.“

In addition to helping expand 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 this article explains Suzhou, a large city in China’s Jiangsu province, is one of the cities selected to participate in the digital renminbi pilot project. To date, more than 30 million digital currency wallets or e-CNY have been created. It is this growth in the number of wallets that has underscored the importance of having an appropriate insurance product for e-CNY users, the article states.

Explaining how the insurance product works, the article says that if personal funds are stolen or a wallet’s password is compromised during the warranty period, the affected wallet user will be able to file a claim. Since the launch of the insurance product, more than 500 people, including students from Soochow University’s business school and employees of Zhangjiagang government agencies, have reportedly signed up.

As of 2020, China Pacific Insurance’s Suzhou branch has expanded the use of digital yuan through increased cooperation with stakeholders such as the government, banks, and B and C customers. The report states that these stakeholders are responsible for setting up a risk management and risk management system. The report states that these stakeholders are responsible for collecting insurance premiums, paying claims, and paying salaries and benefits to employees.