DBS Bank China has announced the launch of an e-CNY merchant solution, which enables businesses in mainland China to receive payments in the central bank digital currency (CBDC). The new service allows corporate clients to collect funds from their customers in e-CNY and have it automatically settled into their CNY bank deposit accounts.
This solution is designed to provide a number of benefits, including the elimination of manual settlement processes and the ability to receive payments in underserved regions with limited internet access. Additionally, DBS’ digital platform for business banking offers itemized e-CNY transaction reports for reconciliation.
Ginger Cheng, CEO of DBS Bank China, commented on the launch: “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.”
Lim Soon Chong, DBS Bank head of global transaction services, stated that the new CBDC service is a milestone in the firm’s mission to enable instant and frictionless payments. He added that DBS Bank is looking to explore new digital payment solutions, such as cross-border CBDC payments.
Since launching the CBDC in 2019, China has seen a rapid expansion of the digital yuan. According to the country’s central bank, 13.6 billion e-CNY (roughly $2 billion) were in circulation by the end of 2022, with adoption across 26 cities and 17 provinces.
DBS Bank is known for its pro-crypto stance. It launched cryptocurrency trading and custody services for institutional clients in 2020 and was among the few companies that benefited from the crypto market crash, seeing an 80% increase in Bitcoin trading volumes in 2022. The firm has also taken part in various government-backed blockchain initiatives in Singapore, such as Project Orchid, Project Guardian and Project Ubin.
