On July 5, DBS Bank China made an official announcement regarding the launch of its e-CNY merchant solution. This innovative tool enables mainland businesses to accept payments in the central bank digital currency (CBDC).

By using the e-CNY merchant solution, corporate clients of DBS Bank China can seamlessly collect payments from their customers in e-CNY and perform automated settlements of e-CNY directly into their CNY bank deposit accounts.

Benefits and Features of the Solution

DBS Bank’s e-CNY merchant solution offers several advantages to businesses. One notable benefit is the elimination of manual settlement processes, allowing enterprises to collect CBDC effortlessly. Furthermore, the solution caters to merchants in underserved regions with limited internet connectivity, ensuring they can receive payments seamlessly.

The tool also streamlines the reconciliation process by providing consolidated merchant reports that include itemized e-CNY transactions. These reports are easily accessible via DBS’ digital platform for business banking.

First Successful e-CNY Transaction

A visual representation of digital payment

Ginger Cheng, CEO of DBS Bank China, proudly announced the successful completion of the first e-CNY transaction involving a catering company in Shenzhen. Cheng emphasized the significance of integrating a CBDC collection and settlement method into clients’ existing payment systems. This integration prepares businesses for a digital future where e-CNY is widely used for daily activities.

Cheng further expressed DBS Bank’s commitment to enhancing user experience while actively supporting China’s financial market innovation.

Enabling Instant and Frictionless Payments

Lim Soon Chong, Head of Global Transaction Services at DBS Bank, highlighted the importance of the new CBDC service as a milestone in the bank’s efforts to facilitate instant and frictionless 24/7 payments.

Chong expressed enthusiasm for further exploring digital payment solutions, such as cross-border CBDC payments, building upon this successful launch.

China’s Progress with the Digital Yuan and DBS Bank’s Crypto-Friendly Stance

China has made significant strides in promoting and expanding the digital yuan since its launch in 2019. The country’s central bank reports that approximately 13.6 billion e-CNY, equivalent to $2 billion, were in circulation by the end of 2022. The CBDC is currently accepted in 26 cities and 17 provinces across China. As the program gradually expands to more regions, widespread adoption of the digital yuan is expected.

CBDC adoption is fast becoming widespread

While actively supporting initiatives like e-CNY, DBS Bank is well-known for its pro-crypto stance. In 2020, the Singaporean megabank introduced cryptocurrency trading and custody services for institutional clients. It was also among the few companies worldwide that benefited from the massive collapses in the crypto industry, witnessing an impressive 80% surge in Bitcoin (BTC) trading volumes in 2022.

In addition to assisting China in expanding its CBDC ecosystem, DBS Bank has participated in various government-related blockchain initiatives in Singapore. Notable projects include Project Orchid, Project Guardian, and Project Ubin. These initiatives demonstrate the bank’s commitment to technological advancements and its active role in promoting blockchain innovation.

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