• DBS Bank China has launched a digital yuan (e-CNY) solution to allow businesses in mainland China to receive payments in the central bank digital currency.
• The new service will enable benefits such as eliminating manual settlement processes and allowing e-CNY payments in underserved regions with limited internet connectivity.
• This marks another milestone for DBS Bank’s efforts of enabling instant and frictionless 24/7 payments.
Crypto-friendly DBS Bank launches Digital Yuan Transaction Tool
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).
Features of E-CNY Solution
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.
First E-CNY Transaction Completed
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.”
Commitment To Financial Market Innovation
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,” he added.
Digital Yuan Launched In 2019
Since launching the CBDC in 2019, People’s Bank of China has been trialing it across four cities throughout 2020 – Shenzhen, Suzhou , Xiong’an and Chengdu – before rolling out nationwide later this year.