DBS launches a new service allowing Chinese businesses to accept e-CNY payments, with the first transaction completed for a catering business in Shenzhen. Discover the advantages of this innovative digital payment solution by DBS.
DBS has introduced a new service that enables businesses in China to accept payments in e-CNY, the nation’s digital currency (CBDC). The major financial institution has also finished the first transaction on the new platform for a customer, a catering business in Shenzhen.
In a statement released today (Wednesday), the Singapore-based banking and financial services company also listed a few advantages of the new service.
Solution for E-CNY Merchant Collection
Merchants can settle payment transactions automatically into their e-CNY bank deposit accounts using the e-CNY merchant collection system. The solution enables shops to reconcile their financial reports even with spotty internet connectivity. The reports are available on the bank’s online platform, DBS IDEAL, according to DBS.
“By seamlessly integrating a CBDC collection and settlement method into our clients’ existing payment system, this will help position their business for a digital future where consumers in China use e-CNY for their daily activities,” said Ginger Cheng, CEO of DBS Bank in China. The development of China’s financial market innovation is actively supported by this, demonstrating our twofold commitment to making banking enjoyable for our clients.
Since e-CNY was introduced in China, users have steadily adopted the CBDC. There are currently more than 13 billion e-CNY in use, according to data provided by DBS. According to DBS, the number of places in China that accept the money is currently 26 cities and 17 provinces, and this number is anticipated to rise.
Growing adoption of CBDC?
A CBDC is a digital currency created and governed by central banks to serve as a digital substitute for fiat money. A CBDC is centralized and supported by the reserves of the central bank, as opposed to cryptocurrencies, which are decentralized.
The Monetary Authority of Singapore (MAS) has chosen DBS as one of the financial firms to test asset tokenization and decentralized finance (DeFi). Singapore’s Project Guardian, which is focused on blockchain technology and how large banks may use it, wants to emulate DeFi’s success.
The MAS is also constructing networks that can communicate with digital assets. A framework for the steps to guarantee the networks’ effectiveness and safety was just recently released by the authority. Additionally, according to Finance Magnates, the MAS has published new regulations for service providers of digital payment tokens.
