Digital yuan can now be used for insurance

China’s digital yuan is expected to have a dominant role in the future, not just in China, but on the global stage as well. 

The government has already tested its e-CNY’s capabilities in the field of e-commerce, salary payments, and even lotteries, and it was proven as a viable payment method. 

Now, China has expanded the digital yuan’s application even further by integrating it in the insurance industry.

The government has started testing the digital currency in the city of Shenzhen, where a branch of Ping An, a leading insurer, and People’s Bank of China is located. 

Insurance for COVID-19

The digital yuan insurance project involves a new insurance policy specifically made for Shenzhen’s medical workers. In this policy, they are given various kinds of compensation to protect them financially against the negative effects of COVID-19. 

The medical workers are being encouraged to use and adapt digital yuan wallets by giving them incentives that can better improve their insurance policies. 

With this new initiative, the digital yuan has proven itself to be feasible, not only in the field of e-commerce and retail payments but also in more complex applications like insurance policies. 

The political side of e-CNY

Even with the positive developments being achieved by the digital yuan, no one can prevent it from being caught in the political tensions between China and the U.S. 

Recently, some U.S. Senators urged the government to prevent American athletes from using the digital yuan in the upcoming Beijing Winter Olympics because of its security risks. 

The Chinese government has quickly responded by saying the U.S. government should refrain from releasing statements that could harm the digital yuan’s image.

Image courtesy of Cointelegraph News/YouTube

Source: https://bitcoinerx.com/blockchain/digital-yuan-can-now-be-used-for-insurance/