There is good news for Japanese merchants, they no longer need to worry about failed Bitcoin transactions as they can now receive insurance to cover that risk. This new facility will, in all likelihood drive adoption of the crypto currency to new high levels.
Since Bitcoin was officially declared legal in Japan, there has been a tremendous growth in the adoption of the currency and the currency has grown to be mainstream in Japan. The decentralized nature of the currency, however, posed a challenge with some merchants incurring losses in the case of failed Bitcoin transactions. This problem has stopped the currency adoption from reaching its potential level as there are many merchants who shy away because of the risks involved.
To solve this problem a leading Bitcoin exchange in the country, BitFlyer, came up with a solution. The company has agreed a partnership with leading insurance company Mitsui Sumitomo Insurance to offer all Bitcoin merchants Bitcoin insurance. The insurance policy is specifically custom made to provide a solution against failed Bitcoin transactions.
This insurance product was officially launched on Friday and this has already generated a significant amount of interest from merchants. The likelihood is that innovation will drive more companies to provide similar insurance products which will, in turn, lead to further growth in bitcoin adoption.
It is hoped that this innovation will lead to the introduction of similar bitcoin insurance policy products in other countries making the currency grow even further; this is an innovation that has long been desired to promote the increased acceptance of bitcoin and will ensure that merchants are fully covered against damages and will be compensated in case of any problems that may arise due to failed Bitcoin transactions.
There have been previous failed attempts by insurance companies to launch products that are Bitcoin related, these earlier products, however, focused on the risk of hacking and theft. Insurance companies needed to customize their products and processes to suit Bitcoins needs, something that was difficult to achieve. This latest solution circumvents these problems by taking on a much simple domain problem of immediate interest and benefit to merchants looking to accept bitcoin without requiring wholesale process changes to accomodate.
News has it that there is another Bitcoin insurance company shortly to announce further products; this company has been formed through a collaboration of CoinCheck, Tokio marine and Nichido Fire Insurance. We wait with anticipation to see what they offer.