Sunday, July 12, 2020

Bitcoin Disrupts France’s Massive $2.2 Trillion Life Insurance Market

Life insurance companies in France can now include Bitcoin and other cryptocurrencies in life insurance contracts. It will enable them to invest in cryptocurrencies without any limitations to the amount that can be invested. This is as a result of a Pact Act approved by the French government, according to a media outlet’s report on April 14.

French Government Approves Pact Act to Allow Crypto Issuance By Insurance Company

Per the report, the French government while in the National assembly last week, approved a Pact Act known as “Plan d’action pour la croissance et la transformation des entreprises”. The bill was passed after 147 and 50 Assemblymembers voted for and against the bill’s approval, respectively.

Accordingly, the bill permits life insurance companies in the region to offer cryptocurrencies as a form of investment. No limitation has been set to the type of cryptocurrency or amount which can be offered by an insurance company. It has also been noted that this is the first time Insurance companies in the region will be able to offer investments of this nature.

Dual Provision for Pact Act Requires investments Through SPFs

Furthermore, a dual provision of the Pact Act allows insurers to invest in these cryptocurrencies through specialized professional funds (SPFs). The regulations surrounding the SPF’s investment was relaxed and as such, they can invest in virtual assets that are based on blockchain technology.

More light into the passed bill reveals that attempts had been made over the past year by policymakers, companies, and entrepreneurs, to allow crypto assets to be offered. There are expectations that other countries in Europe might follow France’s move.

Economy Minister Bruno Le Maire while commenting on the development said:

Very happy with the adoption of the law PACT! The vote is wide, thank you to the majority for your total support and for all the work that has been done. We are determined to continue transforming our economy

France’ Life Insurance Market of 2.2 Trillion Euros Could Foster Crypto Adoption

Reportedly, France Life Insurance Market has assets is valued at 2.2 Trillion Euros. These assets are mostly offered to those seeking investments and retirement savings. As such, allowing this sector to offer cryptocurrency could positively impact on the price of cryptocurrencies as a whole.

In January, Tobacco stores in France began selling Bitcoin, Ethereum, Dash, and Litecoin coupons. Here, these vouchers are bought in rates of€20, €50, and €200 and then redeemed for Bitcoin. BTCNN on December 12 informed that France plans to invest €500 million towards promoting the growth of Blockchain Technology in the country.

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