Digital currencies have remained a popular investment tool since Bitcoin first came on the scene 10 years ago. For many, they are considered as stores of value and are highly appreciated due to their limited supplies.
It is because of this that they are also susceptible to thefts. Not only that, but crypto exchanges that don’t have the correct security procedures in place are vulnerable targets of hacks. Take for instance Mt. Gox, Coincheck, and Bitfinex.
Unfortunately, in these instances the recovery of stolen funds is impossible. Yet, despite the legal actions being seen with the Mt. Gox security breach it hasn’t stemmed the tide of interest in the market. On the other hand, it is these types of attacks that threaten their use among the unbanked.
According to the CAPVERTO Exchange, a crypto platform specifically for the unbanked, “uninsured assets housed on unsecure exchanges provide little more safety than cash kept at home.”
Delivering Insurance for Better Protection
In order to provide a service to the 1.7 billion unbanked adults worldwide – according to 2018 World Bank data – the CAPVERTO Exchange is offering cryptocurrency insurance to its members.
Cryptocurrency insurance is a natural progression within this nascent industry, which has seen an increasing number of data breaches in recent years. According to PwC, the cyber insurance industry is projected to be worth $7.5 billion by the end of 2020. However, given the attacks against cryptocurrency exchanges, it’s likely that this figure could end up being higher.
As a result, CAPVERTO is giving its users an insurance product to deliver the safest possible experience. Inspired by the closure of Mt. Gox and proclaimed as one of the “first-of-its-kind,” CAPVERTO will be delivering this through a partnership with global insurance provider RiskPoint.
Based on smart contracts, the platform’s crypto insurance will work in concert with industry-standard cybersecurity controls. These include two-factor authentication (2FA), know-your-customer (KYC), anti-money laundering (AML), and proof-of-address.
CAPVERTO’s white paper states that it is through these measures that it will help to “minimise risk to assets from cybercriminals seeking to gain footholds inside cryptocurrency exchanges and leverage that access for theft.”
“Unbanked and underbanked individuals can buy into the CAPVERTO Exchange ICO with the confidence that their new virtual assets are much more resilient in the face of risk than either cash or illiquid assets.”
In an industry where investors want their assets to remain safe, what better way to ensure that than with the aid of cryptocurrency insurance?
Aiding the Unbanked
As a cryptocurrency suite specifically for the unbanked population, the CAPVERTO Exchange offers a range of additional services, which revolve around the CAPVERTO Token (CAP).
These include a prepaid card program, secure peer-to-peer (P2P) lending and borrowing, and a copy trading platform, enabling users to copy what top traders are doing and profit from them.
The prepaid card is the gateway to all services on the exchange, which each member is required to purchase before conducting any business on the platform. The prepaid card program is multi-tiered by colour, starting with the $100 blue card. Cards are provided in both physical and virtual forms and can be used online, in physical ATMs, and stores worldwide.
With each card purchase, the value is conferred in CAP utility tokens. The owner is required to hold a portion for at least six months. Additionally, two per cent of the transaction total is collected as fiat money and reinvested in CAP, according to the platform.
Regarding P2P money transfers and crypto lending, the CAPVERTO Exchange web portal connects each user with an IBAN/SWIFT account for fast, convenient, and and low-fee P2P transfers. The platform’s white paper states that these are more economical compared to Western Union and FOREX, especially when sending money internationally.
It’s hoped that with these measures in place it will help to lower the entry barrier for the unbanked population.