Home | Crypto News | Digital Yuan Transaction Tool is Now Available from Crypto-Friendly DBS Bank

Digital Yuan Transaction Tool is Now Available from Crypto-Friendly DBS Bank

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Crypto-friendly financial institution DBS has conducted the first e-CNY transaction with a Shenzhen catering company for corporate clients.

The debut of the e-CNY merchant solution, which enables mainland enterprises to accept payments in the central bank digital currency (CBDC), was formally announced by DBS Bank China on July 5.

The new service will enable DBS clients in mainland China to receive or collect the e-CNY and automatically settle it into their CNY bank deposit accounts. The bank informed Cointelegraph. As the merchant “collects” the final CNY amount into their bank deposit account, the company refers to this service as a “merchant collection solution” rather than a payment solution.

Businesses would be able to collect CBDC “without having to go through manual settlement processes,” according to the release, thanks to DBS’ solution, which is intended to provide some advantages. Additionally, the product includes e-CNY functionality that enables users to accept payments in underdeveloped areas with spotty internet connectivity.

The system also offers reconciliation through combined merchant reports with itemized e-CNY transactions accessible through DBS’ digital business banking platform.

The first e-CNY transaction involving a food business in Shenzhen was successfully executed, according to Ginger Cheng, CEO of DBS Bank China. She said:

By seamlessly integrating a CBDC collection and settlement method into our clients’ current payment systems, this will help prepare their firms for a digital future in which Chinese consumers use e-CNY for daily transactions.

She continued by saying that the advancement demonstrates the company’s dedication to enhancing user experience while “actively supporting the development of China’s financial market innovation.”

The new CBDC service, according to DBS Bank’s head of global transaction services, Lim Soon Chong, is another step in the company’s mission to make instantaneous, hassle-free, 24/7 payments possible. “We look forward to building on this launch to explore new digital payment solutions, such as cross-border CBDC payments,” the executive continued.

China has made considerable advancements in promoting and extending the digital yuan since establishing the CBDC in 2019. The country’s central bank estimates that by the end of 2022, there will be 13.6 billion e-CNY in circulation, or nearly $2 billion. In China, the CBDC is presently accepted in 26 cities and 17 provinces, and as the program steadily extends to additional areas, adoption is anticipated to increase.

DBS Bank is renowned for supporting cryptocurrencies. The Singaporean megabank started offering institutional clients custody and cryptocurrency trading services in 2020. The company benefited from an 80% increase in Bitcoin trading volumes in 2022, making it one of the few businesses in the entire globe to do so.

DBS also took part in Project Orchid, Project Guardian, and Project Ubin, three government-related blockchain efforts in Singapore.

Jay Solano

Jay Solano

Jay is a crypto and NFT enthusiast dedicated to exploring the dynamic world of digital assets. As a crypto blog writer, he is sharing his knowledge of the latest trends, breakthroughs, and investment opportunities in the blockchain world.

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