DBS Bank, a cryptocurrency-backed bank, is introducing a new solution for its clients in mainland China related to the digital yuan, also known as e-yuan. The bank officially 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). The solution enables DBS customers in mainland China to receive electronic yuan and have it automatically deposited into their yuan bank deposit accounts. DBS refers to it as a "merchant collection solution ,” where merchants collect the final yuan amount into their bank accounts without manual settlement processes. The tool also facilitates e-yuan transactions in underserved areas with limited internet connectivity.
The new solution by DBS also offers integrated merchant reporting, enabling reconciliation of individual electronic RMB transactions through the DBS Commercial Banking Digital Platform. The CEO of DBS Bank (China), Cheng Jiang, highlighted the completion of the first e-RMB transaction involving a catering company in Shenzhen. The aim of the solution is to position businesses for a digital future, allowing Chinese consumers to use e-RMB for everyday activities. Cheng Jiang emphasized the company's commitment to improving user experience and supporting financial market innovation in China.
Lim Soon Chong, the head of global transaction services at DBS Bank, stated that the new CBDC service is a significant milestone in enabling instant, frictionless 24/7 payments. The bank looks forward to exploring additional digital payment solutions, such as cross-border CBDC payments, based on this foundation. China has made significant progress in promoting and expanding the digital yuan since its launch in 2019. The CBDC is currently accepted in 26 cities and 17 provinces in China, with adoption expected to gradually expand to more regions.
DBS Bank has gained recognition for its pro-cryptocurrency stance. In 2020, the major Singaporean bank introduced cryptocurrency trading and custody services for institutional clients. The bank was reported to be among the few to benefit from the cryptocurrency industry ry's massive growth, with significant increases in bitcoin transaction volume and prices. Additionally, DBS is actively involved in various government-related blockchain initiatives in Singapore, such as Project Orchid, Project Guardian, and Project Ubin.
