DBS Bank China has unveiled new offerings for its customers in mainland China related to the digital yuan, also known as e-CNY. The bank recently introduced the e-CNY merchant solution, enabling businesses in mainland China to accept payments in the central bank digital currency (CBDC).
DBS customers can now receive or collect e-CNY and have it automatically settled into their CNY bank deposit accounts. The service, referred to as a "merchant collection solution," allows merchants to collect the final amount in CNY directly into their bank deposit accounts. DBS aims to simplify the process by eliminating manual settlement procedures and leveraging the capabilities of e-CNY, including the ability to receive payments in regions with limited internet connectivity.
DBS Bank's Head of Global Transaction Services, Lim Soon Chong, highlighted the significance of the new central bank digital currency (CBDC) service as a milestone in enabling seamless and instant 24/7 payments. Chong expressed excitement about exploring further digital payment solutions, including cross-border CBDC payments, building upon the recent launch. China has made significant progress in promoting and expanding its digital yuan since its launch in 2019.
The People's Bank of China reported that by the end of 2022, there were approximately 13.6 billion e-CNY in circulation, equivalent to around 2 billion USD. The digital yuan is now accepted in 26 cities and 17 provinces, and its adoption is expected to expand further as the program gradually extends to more regions.
DBS Bank has gained a reputation for its pro-crypto stance, having introduced cryptocurrency trading and custody services for institutional clients in 2020.