DBS Bank, a crypto-friendly financial institution, has introduced a new payment solution for the digital yuan, also known as e-CNY, in collaboration with mainland China. On July 5, DBS Bank China officially announced the launch of its e-CNY merchant solution, enabling businesses to receive payments in the central bank digital currency.
The e-CNY merchant solution allows corporate clients of DBS Bank China to collect payments from their customers in e-CNY and conduct automated settlements directly into their Chinese yuan (CNY) bank deposit accounts. This streamlined process eliminates the need for manual settlement procedures. Furthermore, the solution includes features that enable merchants to receive payments in regions with limited internet connectivity, expanding accessibility.
DBS Bank’s digital platform for business banking provides consolidated merchant reports with itemized e-CNY transactions, enhancing the reconciliation process for merchants. Through this initiative, DBS Bank aims to improve user experience while actively supporting China’s financial market innovation.
Ginger Cheng, CEO of DBS Bank China, highlighted the successful completion of the first e-CNY transaction involving a catering company in Shenzhen. Cheng emphasized the importance of integrating CBDC collection and settlement methods seamlessly into clients’ existing payment systems, preparing businesses for a future where consumers in China increasingly use e-CNY for daily activities. He expressed DBS Bank’s commitment to supporting China’s financial market innovation and enhancing user experience.
Lim Soon Chong, Head of Global Transaction Services at DBS Bank, described the launch of the CBDC service as a milestone in the company’s efforts to facilitate instant and frictionless 24/7 payments. Chong further expressed anticipation for exploring additional digital payment solutions, including cross-border CBDC payments.
China has made significant progress in promoting and expanding the digital yuan since its launch in 2019. By the end of 2022, approximately $2 billion worth of e-CNY was in circulation across 26 cities and 17 provinces in China. As the program gradually expands to more regions, adoption of the digital yuan is expected to increase further.
DBS Bank, known for its pro-cryptocurrency stance, has also ventured into services such as cryptocurrency trading and custody for institutional clients. It actively participates in government-related blockchain initiatives in Singapore, demonstrating its commitment to technological advancements in the financial industry.
In summary, DBS Bank’s launch of the e-CNY merchant solution strengthens business transactions in China by enabling corporate clients to collect payments in the digital yuan and conduct automated settlements. This move aligns with DBS Bank’s support for digital innovation and its dedication to providing efficient and user-friendly banking solutions.