Crypto-friendly bank DBS has conducted the first e-CNY transaction for corporate clients, involving a catering company in Shenzhen.
Join us on social networks
Cryptocurrency-friendly bank DBS is introducing new solutions for its customers in mainland China related to the digital yuan, also known as e-CNY.
DBS Bank China officially announced on July 5 the launch of the e-CNY merchant solution, allowing mainland businesses to receive payments in the central bank digital currency (CBDC).
DBS told Cointelegraph that the new service will allow DBS’ clients in mainland China receive or collect the e-CNY and have it automatically settled into their CNY bank deposit accounts. The company refers to this service as a “merchant collection solution” rather than a payment solution, as the merchant “collects” the final amount in CNY in their bank deposit account.
DBS’ solution is designed to enable a number of benefits, allowing businesses to collect CBDC “without having to go through manual settlement processes,” the announcement notes. The tool also features e-CNY’s capabilities allowing users to receive payments in underserved regions with limited internet connectivity.
Additionally, the solution provides reconciliation through consolidated merchant reports with itemized e-CNY transactions available via DBS’ digital platform for business banking.
According to DBS Bank China CEO Ginger Cheng, the company has completed the first e-CNY transaction involving a catering company in Shenzhen. She said:
“By seamlessly integrating a CBDC collection and settlement method into our clients’ existing payment systems, this will help position their business for a digital future where consumers in China use e-CNY for their daily activities.”
She 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 CBDC 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 CBDC payments,” the exec added.
Related: Chinese city of Jinan accepts CBDC payments for bus rides
Since launching the CBDC in 2019, China has significantly progressed 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 currently accepted across 26 cities and 17 provinces in China, with adoption expected to scale further as the program gradually expands to more regions.
DBS Bank is known for its pro-crypto stance. In 2020, the Singaporean megabank launched cryptocurrency trading and custody services for institutional clients. The firm was reportedly among the few companies in the world that reaped benefits from massive collapses in the crypto industry, seeing a 80% spike in Bitcoin (BTC) trading volumes in 2022.
DBS also participated in various government-related blockchain initiatives in Singapore, including Project Orchid, Project Guardian and Project Ubin.
Magazine: Asia Express: HK crypto ETFs on fire, Binance warns on Maverick FOMO, Poly hack
Source: cointelegraph.com
