France: life insurance pays in bitcoins
France: life insurance pays in bitcoins

France: life insurance pays in bitcoins

By Fabio Lugano - 15 Apr 2019

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France is the first country to provide bitcoin life insurance (BTC) thanks to specific legislative changes.

Last Thursday, in fact, the “Plan d’action pour la croissance et la transformation des entreprises” or PACTE law (“Action Plan for the Creation and Transformation of Enterprises”) was approved by the Paris parliament, that is, the action plan for relaunching companies and for growth.

This document contains the legal changes necessary to allow insurance companies to accept payments and offer products linked to virtual currencies. To be precise, article 21 of the Insurance Code has been modified, which now makes it possible to form “specialized professional funds” that invest in bitcoins and other crypto, all linked to life insurance.

Article 26 Bis has therefore been amended regarding the accounting of assets that can be invested in these products, which can now also contain assets placed on a “dispositif d’enregistrement électronique partagé” that is the blockchain. The LREM deputy from the majority party said:

“Even if it was not the primary objective of the PACTE law, insurance companies can now actually offer products based on virtual assets and can do so through specialized funds.”

The law provides that these products are not available to the great mass of savers, but only to a small specialized audience: in fact, only those who have assets of over 500 thousand euros and have worked at least 12 months in finance will have access to this type of investment. This is to keep an extremely risky product out of reach of inadequately prepared and aware investors.

According to data from the French Savings Observatory and the French Insurers Federation, life insurances have a huge amount of € 1700 billion by 2018, or 40% of the French wealth.

In the first six months of 2018 alone, the French deposited 12.3 billion euros in their life insurance, thus guaranteeing a continuous flow of financial resources.

If even a minor fraction of this enormous wealth were invested in virtual currencies, considering also the long-term view of these investments, a stable asset would be guaranteed invested in virtual currencies that could revive the course.

Fabio Lugano

Graduated with honors from Bocconi University, Fabio is a consultant for companies and wounded shareholders of the Banche Venete. He is also the author of "Scenari Economici", and lecturer and analyst of cryptocurrencies since 2016.

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