Singapore based VeChain, the proprietors of VeChainThor and the VeChain platform are allegedly entering a new partnership with the People’s Insurance Company of China (PICC), a biggest government owned insurance company in China. We must note that this is a move established to help PICC explore blockchain technology and we can’t imagine VeChain’s VET token become a recognised currency for insurance payments.Why not?Well, China are on the verge of totally banning cryptocurrency. Over the past two weeks we have seen Chinese authorities make a number of moves to ban all cryptocurrency from the country. This includes the ban of crypto and blockchain news from social media, a ban of access to crypto exchanges online and even bans that will prevent hotels and venues in certain areas from hosting cryptocurrency and blockchain events.Cryptocurrency is about to see it’s end in China, we don’t know when or if this will change, but we do know that for now, crypto is a no go and therefore we can be confident that this news involving PICC, is not going to have a big impact on VET as a currency.The announcement
People's Insurance Company of China (PICC), one of the largest insurer globally with $126 billion total assets, is opting to embrace blockchain technology with the help of DNV GL and VeChain. https://t.co/2CyZsybRvm
PICC are ‘opting to embrace’ blockchain technology, in line with VeChain. According to the official press release:
“The blockchain solutions designed by PICC come from a partnership with DNV GL and VeChain. These solutions will bring digital transformation across the entirety of PICC. By partnering with DNV GL and VeChain, PICC can provide robust assured solutions that protect user data, distribute ownership, and enhance existing artificial intelligence. These solutions will do so without having to educate PICC's clientele on blockchain technology while still offering the maximum benefits the technology provides.”
Sunny Lu, a co-founder at VeChain has said:
"Collaborating with PICC expands our business within the insurance industry. We are confident we will provide great service and products to PICC, together with DNV GL."
George Kang, CEO at DNV GL Business Assurance Centre has added:
"The role DNV GL plays is to ensure data integrity from the business operation perspective. In conjunction with VeChainThor Platform, we will provide a robust digital trust platform to assist PICC with enhanced data management and efficient data processing."
What does this mean for PICC?First of all, we need to understand exactly what PICC do, as a government owned insurance broker is a little left field in terms of how insurance works worldwide. PICC deal in vehicle instance, commercial and domestic property insurance, cargo insurance, health insurance, marine/agricultural insurance, credit and various other forms of insurance, much like a traditional insurance broker. They are state backed and operate under the state's jurisdiction.By working with VeChain, PICC wish to use the DNV GL platform to offer better services and products to their customers. Using blockchain technology will help improve auditing and will allow for a more transparent and more economic ecosystem. Insurance records will be easier to maintain, certificates will be easier to issue and to access and overall customer experience will be improved. And finally, why VeChain?VeChain and VeChainThor have developed an audit trail system. Simply put their blockchain development focuses on record collection and data management. An example of the VeChain system is that it’s blockchain is currently being utilised for the maintenance of vaccination records in China too. According to the press release:
“PICC chose VeChain because of their existing solutions with DNV GL catering to real problems within businesses and governments. VeChain's use of their public blockchain, VeChainThor, provides enterprises with the tools, securities, and governance to properly control their assets while collaborating across multiple verticals, industries, and even countries. By merging this technology with the assurance services of DNV GL, PICC is set to expand their current offerings, bringing true digital transformation to a now stagnant industry.”
This is a great move for VeChain and gives the entire ecosystem a new use in a country that is very much intent on making the most out of blockchain technology. Sadly though as we have seen, cryptocurrency itself is no longer going to play a major part of that future revolution.