The coronavirus has been the most important news of the year 2020. Well, the disease that has arisen in China continues its progress, causing economic and social uncertainty throughout Asia and beyond. Something that has been related to the increase in the price of Bitcoin in recent weeks. However, the Blockchain is also involved in the fight against the progression of this disease thanks to its use by insurance companies.
Bitcoin and coronavirus
Sometimes, in the world of finance, it is difficult to know for sure what is the cause of this or that movement in the markets. In many cases, we end up assigning blame to certain events. Without realizing that the cause of a variation in prices was elsewhere.
However, in recent days it has become a common point among Bitcoin analysts to relate the significant increase in the price of BTC, with the emergence and rapid expansion of the coronavirus within the territory of China.
Well, as Bitcoin is an active reserve of value, it is clear that in the face of economic, political or social uncertainty, there will be an increase in its price. Since, in order to find a refuge while the crisis is going on, investors will try to place their capital in financial assets that are not affected by the collapse of the international market, as is the case of cryptocurrency.
And the truth is that the progress of the coronavirus has generated both economic and social disruption throughout the world. Partially paralyzing important segments of Chinese manufacturing and the surrounding countries. And putting all the countries of the world on alert.
Blockchain for insurance
However, Blockchain technology has another participation in the health crisis, other than the increase in the price of a financial asset. We refer then to the use that Xiang Hu Bao is making of block chains to make payments to policyholders affected by the coronavirus.
Xiang Hu Bao would not be exactly an insurance company, but an online mutual help platform based on Blockchain technology. It is owned by the Chinese financial giant Ant Financial, and has more than 100 million users participating. Thus, a spokesperson for the platform would have indicated that:
“Xiang Hu Bao has been able to process applications and make payments to participants more quickly, due to the decentralized, free and reliable nature of blockchain technology. Applicants for applications can present their supporting documents as evidence, while research companies can have immediate access to them on the blockchain. All parties involved can see the entire process ».
Thus, the Blockchain would be allowing to reduce paperwork, and therefore increase the agility in the performance of insurers in China. Significantly limiting the potential impact of the virus among Asian countries, according to a Blue Cross Insurance report. A company owned by the Bank of East Asia.
“Our blockchain-backed application service has played a key role during the outbreak of the coronavirus by totally eliminating the paper process and the need to deliver documents back and forth to clinics. This really helps mitigate the risk of infection by face-to-face contact ».
All this only consolidates the importance of Blockchain technology, as a support element in the midst of crises such as that caused by the coronavirus. And a tool to consider once it has been overcome. What makes this our Data of the Day here in CriptoTendencia.
International Studies student, interested in economics and international politics. Passionate about the progress of the Fourth Industrial Revolution in general and cryptocurrencies in particular.