Cryptocurrency-friendly bank DBS is collaborating with the Chinese government on the development of a new payment solution for the digital Yuan, also known as e-CNY.
DBS Bank Announces the Launch of Digital Yuan
DBS Bank China today officially announced the launch of its e-CNY merchant solution, which allows businesses in mainland China to receive payments with central bank digital currency (CBDC).
The new service will allow corporate customers of DBS Bank China to receive payments in e-CNY and automatically deposit e-CNY directly into their CNY bank deposit accounts.
The announcement states that DBS's solution is designed to provide a number of benefits that allow businesses to collect CBDC “without having to go through manual payment processes.”
The tool also has features that allow merchants to receive payments in underserved areas with limited internet connectivity.
According to Ginger Cheng, CEO of DBS Bank China, the company has completed its first e-CNY transaction involving a catering company in Shenzhen.
Cheng said:
“By seamlessly integrating the CBDC collection and settlement method into our customers' existing payment systems, we will help position their businesses for a digital future where consumers in China use e-CNY for their daily activities.”
He added that this development “actively supports the development of China's financial market innovation,” while demonstrating the firm's commitment to improving the user experience.
*Not investment advice.