06/07/2023 (China) - DBS Group China, the mainland subsidiary of Southeast Asia's largest bank, has launched a payment solution for China's digital yuan (e-CNY). This new system enables businesses to accept customer payments in e-CNY and automatically settle them, depositing the funds directly into a fiat bank account. DBS China successfully tested the solution with a catering business in Shenzhen. The bank aims to support the wider adoption of e-CNY and contribute to China's financial market innovation.
China has been steadily expanding the use of e-CNY since its introduction in 2019. The CBDC is now in circulation in 26 Chinese regions across 17 provinces, with approximately 13.6 billion CNY in circulation by the end of 2022. As a central bank-operated digital currency, e-CNY holds the status of legal tender in China.
DBS Bank's involvement in expanding China's digital currency aligns with its efforts in the digital asset space. The bank has been offering a crypto custody service since 2021, allowing high-net-worth customers to store tokens like Bitcoin and Ethereum. Additionally, DBS collaborated with JP Morgan on Project Guardian, a pilot transaction settlement platform on a public blockchain launched in May 2022.
By introducing the payment solution for e-CNY, DBS Group China strengthens its presence in the digital payment landscape and demonstrates its commitment to supporting China's financial market advancement.