In an effort to make cryptocurrencies more accessible to all users, Bitcoin payment processor and wallet service Coinbase has announced it now insures all Bitcoins within its system against theft and loss.
Coinbase chose Aon in November 2013 to insure its digital assets. While the Bitcoins are insured since November, Coinbase felt it appropriate to announce it publicly after other BTC related firms announced the same.
“Coinbase is insured against theft and hacking in an amount that exceeds the average value of Bitcoin we hold in online storage at any given time. The insurance covers losses due to breaches in physical or cyber security, accidental loss and employee theft,” the company said in a blog post.
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Coinbase does point out the insurance does not cover consumer negligence such as an inability to secure personal login details. The coverage is primarily against forced theft and hacking breaches.
Coinbase also made a point of the coverage itself. While other firms personally insure a consumer’s Bitcoins, Coinbase is currently one the only firms to offer 3rd party insurance.
“Some Bitcoin wallets may claim to be ‘fully insured’ while not working with accredited carriers or outright self-insuring. Others may be able to claim ‘fully insured’ at the moment because their number of Bitcoin stored are so low that a small insurance policy happens to cover everything until they grow,” the firm continued in their blog post.
What are your thoughts? Can insurance coverage increase consumer adoption? Let us know in the comment section below.