DBS’s Chinese subsidiary has recently launched a payment system to support the Chinese Central Bank Digital Currency (CBDC), known as e-CNY.
This payment system allows companies and corporate accounts with the bank to receive payments in e-CNY. Notably, the system has already processed its first transaction, with a catering company in Shenzhen receiving an e-CNY payment from a client.
Since its pilot introduction in April 2020, the usage of e-CNY in China has been steadily increasing. As of December 2022, approximately 13.6 billion e-CNY are in circulation. The CBDC is now accepted in 26 cities and 17 provinces across China, and as the program continues to expand into more areas, further adoption is expected.
Changshu has recently started paying public servant salaries using the CBDC, while the bus system in Jinan city now fully supports digital yuan payments. These developments follow the Chinese government’s previous crackdown on cryptocurrency trade and mining. However, the recent relaxation of crypto regulations in Hong Kong may indicate a shift in the government’s approach.
Ginger Cheng, Chief Executive Officer of DBS Bank (China), explains the rationale behind their new innovation:
“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. This showcases our dual commitment to making banking joyful for our clients while actively supporting the development of China’s financial market innovation”
The e-CNY merchant payment solutions are only available to their corporate clients. Corporate clients of DBS China can get in touch with their relationship managers. They can take advantage of a one-stop onboarding service that includes staff training, point-of-sale improvements, and coordination between DBS and UnionPay Merchant Services, DBS’ partner that makes this solution possible.
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