Singapore’s DBS launches e-CNY solution for China
Singapore-based DBS bank has introduced a “merchant collection solution” using e-CNY – China’s central bank digital currency – to allow corporate clients of DBS China to collect payments from their customers in e-CNY, and allow the automated settlement of e-CNY directly into their bank deposit account.
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Fast facts
- DBS has also completed its first e-CNY collection for a client – a catering company in Shenzhen, the lender said in a statement on Wednesday.
- DBS said its merchant collection solution lets businesses receive e-CNY payments digitally in underserved regions which have limited internet connectivity.
- “We look forward to building on this launch to explore new digital payment solutions, such as cross-border CBDC payments,” Lim Soon Chong, group head of global transaction services of DBS, said in the statement.
- China has been a leader among countries developing a CBDC and started trials in Shenzhen in October 2020.
- About 130 countries, representing 98% of global GDP, are exploring a CBDC, according to the Atlantic Council’s CBDC Tracker.
- The value of payments via CBDCs is expected to grow to US$213 billion by 2030 from US$100 million in 2023, according to a March report by U.K. technology market researcher Juniper Research.
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