China’s CBDC trials have moved further ahead as Pingan Property Insurance issued the first digital yuan insurance policies in Shenzhen, south China’s Guangdong Province.
The Shenzhen subsidiary of Pingan Property Insurance issued the first batch of digital yuan insurance policies. Wang Peng (assistant professor at Renmin University) said that simulation exercises are planned to be conducted for the use of digital yuan.
The program also aims to develop user habits for a broader range of application scenarios, unlike previous trials.
“As users increase and the market matures, the application can expand to other fields like financial services, etc.,” he said.
This policy targets medical workers in Shenzhen’s Nanshan district, and provides 300,000 yuan ($46,221) in coverage for death from COVID-19. It also pays a medical worker diagnosed with COVID-19 a lump sum of 50,000 yuan. Further, it offers 50,000 yuan for unfortunate accidental deaths, per media reports. Users are also eligible for the preferential allowance if they use the digital yuan wallet to make payments.
In October 2020 during the first public testing, local government agencies jointly issued 50,000 digital red packets each containing 200 yuan.
Thenceforth, China has been continuously promoting the application of digital yuan that targeted several cities in China, according to sources.
“Patent for technology designed to improve the security of users’ digital currency assets would be developed” as per China Mobile.