French life insurers shift towards the use of the cryptocurrency

Starting from the publication of the decree on the application of the PACTE law, adopted on April 11th, 2019, the French insurers will be able to use the cryptocurrency such as bitcoin to deal with their life policies.The operations shall be performed by means of Specialty Funds.

The use of cryptocurrency was made possible after the amendment of the legislative texts. Art.21 of the PACTE law modifies the Insurance Code and allows the use of specialty funds for unit-linked life insurances.

In addition, Art.26a of PACTE modifies the Monetary and Financial Code and stipulates that all asset listed within the distributed ledger technology known as blockchain, may be considered as an asset of a specialty fund.