Chinese Company Launches Digital Currency Insurance Product – According to a report, the Suzhou branch of China Pacific Insurance, in collaboration with the Suzhou branch of the Bank of Communications, has unveiled what has been termed as the Asian country’s first central bank digital currency insurance product. It went on to say that the introduction “lays the foundation for the continuous and in-depth promotion of digital renminbi.”
According to the report, the new insurance product guarantees the “protection of the personal digital currency wallet” in addition to assisting to broaden the use cases of the digital yuan. Suzhou, a significant city in China’s Jiangsu province, is one of the places chosen to participate in the digital renminbi pilot, according to the report. More than 30 million digital currency or e-CNY wallets have been created to date.
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According to the report, the increase in the number of wallets has increased the need of having a suitable insurance package available to e-CNY users. The report explains how the insurance product works, stating that if personal cash is taken or a wallet’s password is penetrated during the guarantee term, the affected wallet user will be able to file a claim.
Over 500 people have reportedly signed up for the insurance program since its inception, including students from Soochow University Business School and staff from Zhangjiagang government agencies. Since 2020, the Suzhou branch of China Pacific Insurance has been extending the usage of digital yuan through expanded collaboration with stakeholders such as the government, banks, and B-end and C-end customers. According to the report, these stakeholders are in charge of collecting insurance premiums, paying indemnities, and giving employee salaries and benefits.
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