A major step towards the wider disposition of the digital currency of China has been taken recently, as the first-ever Digital Yuan insurance policies have been issued in Shenzhen. The Shenzhen subsidiary of Ping An Property & Casualty Insurance along with the Bank of China branch in Shenzhen issued the first batch of Digital Yuan COVID-19 insurance policies.
Digital Yuan Insurance Policies Issued in Shenzhen Along With Bank of China
As reported by the Global Times, the recent issuance targets the step of conducting a simulation exercise for the utilization of the Digital Yuan in more implementation scenarios and information systems.
This information was revealed by one of the assistant professors at the Gaoling School of Artificial Intelligence at the Renmin University of China, Wang Peng.
In addition to this, Wang Peng revealed that the issuance aims to turn user habits for a wider range of implementation frameworks, as the earlier trials majorly targeted e-commerce and online payments.
Addressing the expansion from the insurance industry to scenarios such as financial services, Wang stated:
“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.”
The Representation of Insurance Policies
Talking about the representation of these recently issued insurance policies, they constitute for the pilot application of the insurance sector of the Digital Yuan to online premium payments.
As per the insurance policy, it will be aiming towards the medical workers in the Nanshan district of Shenzhen, and it provides 300,000 Yuan, which is equivalent to $46,221 in coverage for death from COVID-19.
Moreover, the Shenzhen Special Zone Daily cited an official at the Shenzhen subsidiary of Ping An and reports that Ping An Property Insurance is going to further traverse the implementation of Digital Yuan in insurance claims, making payments, and other aspects.