Crypto-friendly DBS Bank launches digital yuan payment tool
Cryptocurrency-friendly bank DBS is cooperating with mainland China on the development of a new payment solution for 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).
The new service will allow corporate clients of DBS Bank China to collect payments from their customers in e-CNY and conduct automated settlement of e-CNY directly into their CNY 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 capabilities allowing merchants 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. He said:
He 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
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