Crypto-friendly DBS Bank launches digital yuan payment tool

DBS Bank China Introduces E-CNY Merchant Solution

Cryptocurrency-friendly bank DBS is collaborating with mainland China on the development of a payment solution for the digital yuan, also known as e-CNY.

DBS Bank China recently announced the launch of the e-CNY merchant solution, which allows mainland businesses to receive payments in the central bank digital currency (CBDC).

The new service permits corporate clients of DBS Bank China to accept payments from their customers in e-CNY and perform automated settlement of e-CNY directly into their CNY bank deposit account.

The solution is designed to provide a number of advantages, allowing businesses to receive CBDC “without having to go through manual settlement processes,” according to the announcement. The tool also features capabilities enabling merchants to accept payments in underserved regions with limited internet connectivity.

DBS Bank China Introduces E-CNY Transactions

DBS Bank China has launched a new service that enables customers to make e-CNY transactions, a move that showcases the firm’s commitment to improving user experience and supporting the development of China’s financial market innovation. Additionally, the solution provides reconciliation through consolidated merchant reports with itemized e-CNY transactions available via DBS’ digital platform for business banking.

Ginger Cheng, DBS Bank China CEO, said that the company has completed the first e-CNY transaction involving a catering company in Shenzhen. He added that the development showcases the firm’s commitment to improving user experience while “actively supporting the development of China’s financial market innovation.”

Lim Soon Chong, DBS Bank head of global transaction services, noted that the new crypto currency service marks another milestone in the firm’s efforts of enabling instant and frictionless 24/7 payments. “We look forward to building on this launch to explore new digital payment solutions, such as cross-border payments,” the exec added.

Crypto and CBDC Adoption

Since launching the CBDC in 2019, China has made significant strides in promoting and expanding the digital yuan. According to the country’s central bank, there were 13.6 billion e-CNY in circulation, or about $2 billion by the end of 2022. The CBDC is now accepted across 26 cities and 17 provinces in China, with more regions expected to join as the program scales.

In addition to supporting centralized finance initiatives such as e-CNY, DBS Bank has also taken a pro-crypto stance. In 2020, the Singaporean megabank launched cryptocurrency trading and custody services for institutional clients. The firm was reportedly one of the few companies in the world to benefit from the massive crypto market downturn in 2022, seeing a 80% surge in Bitcoin (BTC) trading volumes.

Apart from helping China expand its CBDC ecosystem, DBS has also been involved in various government-related blockchain initiatives in Singapore, such as Project Orchid, Project Guardian and Project Ubin.

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