DBS bank 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.
DBS stated 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.
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.
