Crypto-friendly DBS Bank launches digital yuan payment tool

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

DBS Bank China officially announced On 5 July the launch of the e-CNY merchant solution, which allows mainland businesses to receive payments in central bank digital currency (CBDC).

The new service will allow corporate customers of DBS Bank China to collect payments from their customers in e-CNY and automatically settle e-CNY directly into their CNY bank deposit account.

The announcement states that DBS’s solution is designed to enable a number of benefits, allowing businesses to collect CBDC “without having to go through manual settlement processes.” The tool also has capabilities that allow merchants to receive payments in low-service areas with limited internet connectivity.

Additionally, Samadhan provides solutions for Business Banking through consolidated Merchant Reports with itemized e-CNY transactions available through DBS’s digital platform.

According to Ginger Cheng, CEO of DBS Bank China, the company has completed the first e-CNY transaction involving a catering company in Shenzhen. They said:

“By seamlessly integrating a CBDC collection and settlement method into our customers’ existing payment systems, it will help position their businesses for a digital future where consumers in China use e-CNY for their daily activities.”

He added that the development reflects the company’s commitment to improving the user experience “while actively supporting the development of China’s financial market innovation”.

Lim Soon Chong, DBS Bank’s head of global transaction services, said the new CBDC service is another milestone in the firm’s efforts to enable instant and frictionless 24/7 payments. “We look forward to this launch to explore new digital payment solutions such as cross-border CBDC payments,” the executive said.

Connected: Chinese city Jinan accepts CBDC payments for bus travel

Since launching the CBDC in 2019, China has made great strides in promoting and expanding the digital yuan. According to the country’s central bank, there will be 13.6 billion e-CNY in circulation by the end of 2022, or about $2 billion. CBDCs are currently accepted in 26 cities and 17 provinces in China, with adoption expected on schedule. Gradually expanding to more areas.

DBS Bank is known for its pro-crypto stance, supporting centralized finance initiatives such as e-CNY. In 2020, Megabank of Singapore launched cryptocurrency trading and custody services for institutional clients. The firm was reportedly one of the few in the world to profit from the massive downturn in the crypto industry, with 2022 seeing an 80% spike in bitcoin (BTC) trading volumes.

In addition to helping China expand its CBDC ecosystem, DBS has also participated in various government-related blockchain initiatives in Singapore, including Project Orchid, Project Guardian, and Project Yubin.

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