With the new feature, Chinese businesses can receive CBDC payments even in locations with limited internet connection.
DBS Bank, Singapore’s leading consumer bank known for its cryptocurrency-friendly stance, is taking a pioneering step forward in digital currency payments. The bank has partnered with China to develop a payment solution for the digital yuan or e-CNY, broadening the use of central bank digital currency (CBDC).
On July 5th, DBS Bank China officially rolled out its e-CNY merchant solution. This service enables Chinese businesses to receive payments through the CBDC.
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By using this tool, DBS Bank China’s corporate clients can collect e-CNY payments from customers and automatically settle funds directly into their CNY bank deposit account.
The new solution offers multiple benefits, including the ability to receive CBDC payments “without the necessity of manual settlement processes.” It also equips merchants to accept payments in regions with limited internet connectivity.
Ginger Cheng, CEO of DBS Bank China, announced that the bank had successfully completed its first e-CNY transaction with a catering company based in Shenzhen. Cheng highlighted:
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.
Cheng’s statement underlines the bank’s dedication to enhancing user experience while “actively supporting China’s financial market innovation.”
Lim Soon Chong, DBS Bank’s Global Transaction Services head, views this new CBDC service as another achievement in their ongoing efforts to offer fast, seamless payments 24/7. Chong noted:
We are looking forward to expanding on this launch and exploring new digital payment solutions, such as cross-border CBDC payments.
With the launch of the e-CNY payment solution, DBS Bank further establishes itself as a progressive player in the digital currency sector. As DBS Bank continues to innovate, the possibility of exploring cross-border CBDC payments looms excitingly on the horizon.
In other news, British banking institution Standard Chartered has partnered with PwC China to develop a comprehensive white paper exploring the potential of CBDC in China’s Greater Bay Area.