Bitcoin has gained the status of a mainstream currency in Japan. The growth in adoption of a new mode of payment comes with its own set of challenges due to the decentralized nature of the cryptocurrency. Merchants including Bitcoin as a method of payment are a bit apprehensive about possible failed transactions which might force them to incur losses.
The leading Japanese Bitcoin exchange platform, bitFlyer has come up with a solution for merchants and businesses in the country. The company has partnered with one of the leading Japanese insurance firms, Mitsui Sumitomo Insurance to provide retailers with a unique Bitcoin insurance. The new insurance is custom made to address the merchants’ apprehensions about failed cryptocurrency transactions.
The first of its kind insurance product was released on Friday, and more similar policies are expected to enter the Japanese market soon. The new insurance will cover merchants of damages incurred during the occasions when the customers’ payment doesn’t go through correctly due to system problems or other issues.
A leading financial magazine also provides information about another upcoming insurance offering in the making, created by CoinCheck and Tokio Marine & Nichido Fire Insurance.
The insurance sector has so far been quite apprehensive about the cryptocurrency sector. There have been many instances where similar ideas were shot down before giving it serious consideration. With increasing popularity of Bitcoin, the insurance providers have evolved to meet the changing needs.
Even blockchain technology has gained inroads into the insurance industry. Various companies are currently working on creating distributed ledger based solutions that make use of smart contract to automate the issuance of policies and claim processing. The segment of the industry has already gained a name for itself, “Insurtech”.
As insurance companies increasingly opt a friendly stance towards cryptocurrencies, more crypto-businesses will opt for the services.
Ref: Nikkei | Image: NewsBTC