(MENAFN- CoinXposure)
DBS Bank China announced the launch of the e-CNY merchant solution on July 5, allowing mainland businesses to accept payments in the central bank digital currency (CBDC).
DBS announced that its clients in mainland China could receive or collect e-CNY and have it automatically deposited into their CNY bank deposit accounts.
Rather than a payment solution, the company refers to this service as a“merchant collection solution” because the merchant“collects” the final amount in CNY in their bank deposit account.
DBS's solution is intended to enable several benefits, including the ability for businesses to collect CBDC“without having to go through manual settlement processes,” according to the announcement.
The application also includes e-CNY capabilities that allow users to receive payments in underserved regions with limited internet connectivity.
In addition, the solution provides reconciliation via consolidated merchant reports with itemized e-CNY transactions accessible through DBS' digital platform for business banking .
According to the chief executive officer of DBS Bank China, Shenzhen's first e-CNY transaction involved a catering company. She said:
She added that the innovation demonstrates the company's dedication to enhancing the user experience while“actively supporting the development of China's financial market innovation.”
Lim Soon Chong, head of global transaction services at DBS Bank, remarked that the new CBDC service represents a significant step in the company's efforts to enable 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 executive continued.
Since the launch of the CBDC in 2019, China's efforts to promote and expand the digital yuan have made significant progress.
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According to the country's central bank, 13.6 billion e-CNY, or approximately $2 billion, will be in circulation by the end of 2022.
Currently, the CBDC is accepted in 26 cities and 17 provinces in China, with adoption expected to increase as the program gradually expands to more regions.
DBS Bank is renowned for its support of cryptocurrency. In 2020, the Singaporean megabank will introduce custody and trading services for institutional clients.
The company reportedly saw an 80% increase in Bitcoin trading volumes in 2022, making it one of the few firms in the world to profit from the collapse of the cryptocurrency industry.
DBS also participated in several blockchain-related government initiatives in Singapore, including Project Orchid, Project Guardian, and project ubin .