China Construction Bank Permits Digital Renminbi Purchases of Wealth Management Products

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Big state-owned lender China Construction Bank (CCB) has launched trials to permit the usage of the digital renminbi to make purchases of wealth management products (WMP) via mobile apps.

CCB’s mobile banking app recently added a feature for the use of the digital renminbi for WMP purchases, in a move which has been hailed by observers within China as a major breakthrough in terms of the currency innovation’s financial applications.

The CCB app currently has two WMP’s available for purchase using funds from digital renminbi wallets – the “Longbao Daily Basis Open WMP” (龙宝按日开放式理财产品) and the “Anxin Daily Basis Open WMP” (安鑫按日开放式理财产品).

State-owned media said that move by CCB marks the start of the use of the digital renminbi to purchase a range of financial services, including stakes in investment funds and insurance products, all of which will abet the ability of everyday Chinese consumers to better manage their finances.

Chinese financial institutions are also expected to make greater use of the smart contract features of the digital renminbi when it comes to developing new insurance, pre-payments and loan approval applications.