DBS Bank China Launches Digital Yuan Merchant Collection Solution
DBS Crypto Friendly Bank Announced the launch of a digital yuan business collection solution for business customers.
The new payment solution will allow businesses in mainland China to receive payments in central bank digital currency (CBDC).
DBS’s merchant collection platform enables businesses to have automated settlement of e-CNY into their bank deposit accounts.
At least one of the clients has already successfully used the platform to make a digital yuan transaction, the bank announced.
The payment solution is exclusively for corporate customers of DBS Bank China
According to the announcement, the payment solution will exclusively allow corporate clients of DBS Bank China to collect e-CNY from their clients and perform automatic settlement of the digital currency directly to their CNY bank deposit account.
The CBDC payment solution is designed to provide several benefits, including allowing businesses to collect CBDC “without having to go through manual settlement processes,” the bank noted.
With this tool, the bank will also enable merchants to receive payments in underserved regions with limited internet connectivity.
It also provides reconciliation using consolidated business reports with detailed e-CNY transactions through the bank’s digital platform for commercial banking.
DBS Bank (China) CEO Ginger Cheng said that they have completed the first e-CNY collection for a client – a catering company in Shenzhen. She added that by integrating the CBDC payment solution into existing traditional payment systems, I will position her business for a digital future where consumers in China use e-CNY for their daily activities.
DBS Bank has a reputation for its pro-crypto stance. In 2020, the largest bank in Singapore launched cryptocurrency trading and custody services for institutional clients.
Digital yuan adoption continues to grow in China
The announcement highlighted that the use of the national digital currency in China has grown remarkably since its pilot launch in April 2020. At the end of last year, there were more than 13.6 billion e-CNY in circulation.
Currently, the digital yuan is accepted in 26 cities and 17 provinces in mainland China. The bank predicts that digital yuan adoption will grow further as the program gradually expands to more regions.
As previously reported, the Chinese government is also looking to add digital yuan functionality to social security cards.