China offers digital Yuan medical insurance policy for Covid-19
China's first insurance policy using digital yuan for settlement was issued in Shenzhen, reported the local media. The new product, targeting medical personnel at risk of coronavirus, is offered by the country's largest insurer, Ping An.also under its aegis of the fintech and healthtech entities.
Ping An partners with Bank of China to offer digital yuan insurance policy
In what has been described as another step major move towards a wider deployment of the Chinese central bank's digital currency ( CBDC ), the first digital yuan-settled insurance policies were launched in Shenzhen, Guangdong Province. They are the result of a cooperation between the local branch of Ping An Property Insurance and the branch of the Bank of China in the city, the Shenzhen Special Zone Daily reported .
The new insurance product is geared towards the medical staff of the Nanshan district in Shenzhen. The policy provides coverage of 300,000 yuan (over $ 46,000) in the event of death resulting from a Covid-19 infection, the English-language newspaper Global Times detailed in an article.
Insured healthcare workers are also eligible to receive 50,000 yuan (approximately $ 7,700) if they are diagnosed with Covid and the same amount of money in the event of accidental death. insurance using a digital wallet inyuan will also receive an exclusive preferential allocation, the publication adds.
Ping An 's offer represents a pilot implementation of Chinese digital fiat in the insurance market. The Chinese giant also intends to explore the application of digital RMB in claims, payments and other insurance scenarios, according to a representative from its Shenzhen office. Wang Peng, Assistant Professor, Gaoling School of Artificial Intelligence, Renmin University, commented:
Shenzhen is one of the major cities participating in a government campaign to promote the use of the digital yuan through red envelope gifts and lotteries, the others beingSuzhou, Beijing , Chengdu and Shanghai . Chi na has so far distributed $ 40 million in digital yuan in red envelopes, as target of Bitcoin.com News reported earlier this month, of which $ 35 million was scattered across these five metropolitan areas.
Public tests of the yuan digital began in Shenzhen in mid-October when the local government and the People's Bank of China distributed 50,000 red envelopes, each loaded with 200 digital yuan. The documents are believed to have been part of the first such experiment in China.
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