Copy link
Increase text size
Decrease text size
Link copied

China’s leading insurer issues first digital yuan insurance policies in the city of Shenzhen

The new insurance policy is tailored for medical workers in the Nanshan district of Shenzhen and offers compensation for COVID19 diagnosis or death caused by the coronavirus.

Shenzhen City, China / Image by Charlottees from Pixabay

Thu, 22 Jul 2021, 08:37 am UTC

China appears to be ahead of the pack in the central bank digital currency race. The People's Bank of China, the country’s central bank, has already tested its CBDC pilot also known as the digital yuan in a variety of scenarios such as salary payments, traditional lotteries, and e-commerce.

This week, the PBOC is testing the digital yuan in another segment of the financial services industry. The first digital yuan insurance policies have been issued in the city of Shenzhen, a move that is seen as another step towards the broader deployment of China’s CBDC, according to Global Times.

The digital yuan insurance policies were issued by the Shenzhen subsidiary of China’s leading insurer, Ping An Property Insurance. The Peoples Bank of China partnered with the insurance firm to pilot the CBDC in the insurance industry.

The new insurance policy is tailored for medical workers in the Nanshan district of Shenzhen and offers compensation for COVID19 diagnosis or death caused by the coronavirus. The insurance offers coverage of 300,000 yuan (around $46,400) for death from COVID 19, 50,000 yuan ($7,700) for medical workers diagnosed with COVID-19, and 50,000 yuan ($7,700) for accidental death.

Medical workers are encouraged to use digital yuan wallets when making their premium payments. They are eligible for an exclusive preferential allowance if they use such a payment method.

“As more users get used to making payments with the digital yuan and the market matures, the application scenarios will be able to expand from the insurance industry to more scenarios such as financial services, life services, and even the purchase of funds and trading in securities,” said Wang Peng, an assistant professor at the Gaoling School of Artificial Intelligence at the Renmin University of China.

While the current setup only covers the use of the digital yuan for insurance premium payments, Ping An Property Insurance plans to use the CBDC for other insurance-related transactions. The company will explore the possibility of using digital currency for insurance claims, payments, and other aspects of its insurance business.

TokenPost | [email protected]

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
More
  • Bitcoin (btc) $41,461.00 (-0.99%)
  • Ethereum (eth) $2,782.30 (-1.69%)
  • Cardano (ada) $2.19 (-3.80%)
  • Tether (usdt) $1.00 (+0.47%)
  • Binance Coin (bnb) $322.63 (-6.75%)
  • Bitcoin (btc) $41,461.00 (-0.99%)
Jul 15, 2021 (Thursday)
13:30
BTC Surges by 1.16% Within 5 Mins, Marking 31,824.01 USDT
12:06
BTC Surges by 1.12% Within 5 Mins, Marking 32,104.8 USDT
10:25
BTC Drops by 1.03% Within 5 Mins, Marking 32,171.88 USDT
02:13
TriumphX Scouts 'MINAMCOMPANY' CEO Woo-Seong Lee As Creative Director
02:00
ETH Tops List Of Crypto Net Inflow With $298.96 Mln In Past 10 Hours
Jul 14, 2021 (Wednesday)
13:14
BTC Surges by 1.03% Within 5 Mins, Marking 32,738.08 USDT
09:03
BTC Surges by 1.01% Within 5 Mins, Marking 31,899 USDT
02:30
Crypto Market Sentiment On Jul 14: Market In "Extreme Fear"
02:00
ETH Tops List Of Crypto Net Outflow With $224.97 Mln In Past 10 Hours
Jul 13, 2021 (Tuesday)
02:30
Crypto Market Sentiment On Jul 13: Market In "Extreme Fear"
02:00
ETH Tops List Of Crypto Net Outflow With $178.61 Mln In Past 10 Hours
Jul 12, 2021 (Monday)
02:30
Crypto Market Sentiment On Jul 12: Market In "Extreme Fear"
02:00
BTC Tops List Of Crypto Net Inflow With $164.82 Mln In Past 10 Hours
Jul 11, 2021 (Sunday)
21:31
BTC Surges by 1.02% Within 5 Mins, Marking 34,475.6 USDT
10:00
ETH Tops List Of Crypto Net Inflow With $122.76 Mln In Past 18 Hours
06:17
SOBA Listed On LATOKEN
02:30
Crypto Market Sentiment On Jul 11: Market In "Extreme Fear"
02:00
BTC Tops List Of Crypto Net Outflow With $87.56 Mln In Past 10 Hours
Jul 9, 2021 (Friday)
21:40
BTC Surges by 1.08% Within 5 Mins, Marking 33,911.8 USDT
02:30
Crypto Market Sentiment On Jul 09: Market In "Extreme Fear"
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.
PUBLISHsoft