DBS Bank, a banking giant based in Singapore, has introduced an e-CNY collection platform in China, tapping into the growing usage of central bank digital currency (CBDC).
The newly launched platform enables automated settlement of e-CNY into businesses’ Chinese yuan bank deposit accounts, marking a significant stride in CBDC utilization.
The platform is seen as a significant move amidst the increasing usage of e-CNY in China. As of December 2022, over 13.6 billion e-CNY was in circulation, constituting 0.13% of cash and reserves held by China’s central bank.
e-CNY is accepted across 26 cities and 17 provinces in China, reflecting the country’s rapid digital transformation.
This DBS platform empowers business customers in China to seamlessly collect payments in e-CNY and facilitates smooth reconciliation through the DBS IDEAL banking platform.
The bank has already completed its first e-CNY collection for a catering company based in Shenzhen, demonstrating the platform’s operational readiness.
The development underscores DBS’s commitment to exploring innovative digital currency solutions. The bank has been an active participant in Project Guardian, a multicentric initiative featuring participants like JPMorgan, SBI Digital, and Marketnode. This project is testing asset tokenization and DeFi protocols for traditional banks.
DBS Bank is also one of the co-founders of Partior, an independent company aiming to transform cross-border payments and global interbank value movement.
The bank has previously contributed to projects such as Project Orchid and Project Ubin, which explored programmable digital Singapore dollars and the application of decentralized finance protocols, respectively.
The deployment of the e-CNY collection platform exemplifies DBS’s forward-thinking approach to banking in the digital age and its commitment to shaping the future of digital currency.
The bank is poised to continue leading the charge toward the wider acceptance and usage of CBDCs in Asia and beyond.
Also Read: Jinan Goes Cashless: CBDC Payment Now Accepted for Bus Rides
