Key Points:
- DBS becomes one of the first international banks in China to offer an e-CNY merchant collection system.
- The technology enables DBS China corporate clients to collect payments in e-CNY and settle them automatically into their CNY bank deposit accounts.
- The bank showcases its commitment to supporting China’s financial market innovation and offers additional benefits.
DBS is one of the first international banks in China to provide an e-CNY merchant collection system.
The technology enables DBS China corporate clients to collect payments in e-CNY, China’s central bank digital currency (CBDC), and utilize automatic settlement of e-CNY straight into their CNY bank deposit account.
Businesses may now automate the settlement of e-CNY into their bank deposit accounts thanks to the newly introduced merchant collection platform. DBS stated that at least one customer has already utilized this platform for a transaction.
DBS China CEO Ginger Cheng said that the bank had completed its first e-CNY collection for a Shenzhen catering firm.
“This showcases our dual commitment of making banking joyful for our clients while actively supporting the development of China’s financial market innovation,” she adds.
Among other advantages, the technology offers easy reconciliation by delivering consolidated merchant reports with itemized e-CNY transactions – the report is available through DBS IDEAL, the bank’s digital business banking platform.
DBS is a participant in Project Guardian, an initiative created by the Singapore Monetary Authority to explore asset tokenization and decentralized financing (DeFi) for conventional banks. In addition, the bank is taking part in tests to establish the infrastructure required to issue a programmable digital Singapore dollar.
After its trial introduction in April 2020, e-CNY use in China has gradually increased. As of December 2022, there were about 13.6 billion e-CNY in circulation. The CBDC is now recognized in 26 Chinese cities and 17 provinces, with acceptance likely to increase as the program steadily spreads to other locations. According to official figures, e-CNY accounts for 0.13% of China’s central bank’s currency and reserves.
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Harold
Coincu News
Source: https://coincu.com/200220-exciting-dbs-first-customer-using-e-cny/