DBS Bank, a cryptocurrency-friendly institution, has launched new solutions for its customers in mainland China, specifically tailored to the digital yuan, also known as e-CNY.
Crypto-friendly DBS Bank Launches e-CNY in the Market
On July 5, DBS Bank China made an official announcement regarding the introduction of the e-CNY merchant solution, which enables businesses in mainland China to accept payments in the central bank digital currency (CBDC).
DBS Bank has stated that this service allows its clients in mainland China to receive or collect e-CNY and have it automatically settled into their CNY bank deposit accounts. Rather than being labeled as a payment solution, the company refers to it as a “merchant collection solution” since the merchant receives the final amount in CNY directly into their bank deposit account.
The key objective of DBS Bank’s solution is to offer several benefits, such as streamlining the collection of CBDC by eliminating the need for manual settlement processes. Moreover, the solution leverages the capabilities of e-CNY to enable businesses to receive payments in regions with limited internet connectivity.
Additionally, the solution provides reconciliation through consolidated merchant reports, allowing businesses to access itemized e-CNY transactions via DBS Bank’s digital platform for business banking.
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.
DBS Bank China CEO Ginger Cheng
Furthermore, she emphasized the firm’s dedication to enhancing user experience and simultaneously fostering the advancement of financial market innovation in China.
Lim Soon Chong, Head of Global Transaction Services at DBS Bank, highlighted the significance of the new Central Bank Digital Currency (CBDC) service as yet another achievement in their ongoing endeavors to facilitate instantaneous and seamless 24/7 payments. “We are excited about leveraging this launch as a foundation to delve into innovative digital payment solutions, including cross-border CBDC payments.” the executive further stated.
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