Singapore Bank DBS to Provide Merchants e-CNY Payment in China

The Development Bank of Singapore Limited, popularly known as DBS Bank, is to offer e-CNY payment settlements to merchants in China. The efforts are taking place in the wake of leveraging opportunity with the growing adoption of the Chinese central bank of digital currency (CBDC). DBS has become the first foreign bank with the step of facilitating e-CNY payment solutions.

In an official announcement made on Wednesday, July 5, Chinese arm of DBS launched e-CNY merchant collection solution and a complete client CBDC transaction. The bank aims at enabling the corporate clients of DBS China to collect e-CNY payments from their customers. The financial institution will ensure the “automated settlement” directly to the CNY bank account.

Chinese CBDC project e-CNY has been around since the launch of its pilot phase in April 2020. The digital currency aims to digitize the economy and has made its reach across 26 cities and 17 provinces in the country.

According to the data from the Chinese central bank, People’s Bank of China, there are over 13.6 Billion e-CNY, equivalent to 13.6 Billion yuan or $2Bbillion, in circulation. The value of digital currencies in circulation consists of about 0.13% of overall cash and reserves in the bank.

DBS bank highlighted the several benefits of e-CNY payment solution, including the seamless and efficient way to collect the digital currency without “manual settlement processes.”

In addition, the bank expects the unique capabilities of Chinese CBDC would benefit businesses in the region to digitally receive payments, even in regions with weak or limited internet. Furthermore, the bank is said to provide “reconciliation” as it will procure consolidated merchant reports with the analyses of transactions made with e-CNY. Merchants can access the report on a digital platform for the business banking platform of a bank dubbed DBS IDEAL.

DBS Bank China’s Chief Executive Officer (CEO), Givner Cheng, stated that several clients have shown strong interest in the CBDC solution brought by the bank. He has informed us the bank has got a client, a Shenzhen based catering company, and has completed the first e-CNY payment collection with DBS.

“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,” he added.

The Singapore bank ventured in experimentation with emerging technology and has leveraged their power to create a better, efficient and safer payment transferring system. It co-founded a company aiming at redefining cross international payments dubbed Partior in 2021.

DBS participated in Project Orchid of Singapore financial regulator Monetary Authority of Singapore (MAS) to assist in the infrastructure development for digital Singapore dollar.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing