Insurance companies in the United Arab Emirates (UAE) are taking a big step towards crypto integration. Customers can now pay their insurance premium with cryptocurrency, and in some cases also receive compensation in digital currency. This gives crypto a permanent place in the country’s regular financial transactions.
Dubai Insurance launches crypto wallet for insurance
A prominent role is reserved for Dubai Insurance. The insurer is the first in the region to introduce a digital wallet with which customers can pay insurance premiums and receive claims in crypto. The technology promises faster processing and more transparency, and complies with local laws and regulations.
For the security of digital assets, Dubai Insurance has partnered with Zodia Custody, a regulated party specialized in the secure storage of crypto. “Trust is crucial at this stage of adoption,” said Zane Suren, Zodia’s managing director for the Middle East and Africa.
UAE accelerates crypto integration in financial sector
The insurance industry’s step is not an isolated one. In the UAE, crypto integration is rapidly expanding to other sectors. Several banks in the country now offer crypto services, such as trading and payments. The central bank has also approved the deployment of dirham-backed stablecoins.
Banks such as RAKBank and Zand are allowed to use these digital coins, pegged to the value of the UAE dirham, in their financial products. This accelerates the adoption of crypto as a practical means of payment within the traditional economy.
Insurance for blockchain companies on the rise
The growing role of crypto within the insurance world is not limited to consumer payments. Insurers such as Liva Group and Relm Insurance specifically target companies in the blockchain and crypto sector. They offer specialized coverage for risks associated with digital assets.
With these innovations, the UAE underlines its ambition to lead the world in digital financial innovation. According to recent reports, the country is now among the top five worldwide in crypto adoption.
Source: https://newsbit.nl/vae-zetten-volgende-stap-in-digitalisering-met-crypto-bij-verzekeraars/
