DBS has launched a new solution that allows merchants in
China to collect payments using e-CNY, the country’s central bank digital
currency (CBDC). The banking giant has also completed the first transaction for
a client, a catering company in Shenzhen, on the new platform.
Additionally, the Singapore-based
banking and financial services firm outlined some the benefits of the new service
in an announcement today (Wednesday).
The e-CNY merchant collection
solution lets merchants settle payment transactions automatically into their e-CNY bank deposit accounts. The service works even with limited internet
connectivity and enables merchants to reconcile their financial reports. The
reports can be accessed through the bank’s digital platform, DBS IDEAL, DBS explained.
“By seamlessly
integrating a CBDC collection and settlement method into our clients’ existing
payment system, this will help position their business for a digital future
where consumers in China use e-CNY for their daily activities,” commented
Ginger Cheng, the CEO of DBS Bank in China. “This showcases our dual
commitment to making banking joyful for our clients while actively supporting
the development of China’s financial market innovation.”
Since the launch of
e-CNY in China, the CBDC has seen steady adoption by users. According to the data
shared by DBS, more than 13 billion e-CNY are in circulation. DBS said that the
currency is currently accepted across 26 cities and 17 provinces in China, and
the figures are expected to grow.
Growing CBDC Adoption?
A CBDC is a digital currency developed and regulated
by central banks as a digital representation of the fiat currencies. Unlike a
cryptocurrency, which is decentralized, a CBDC is centralized and backed by the central bank’s reserves.
DBS is one of the
financial institutions selected by the Monetary Authority of Singapore (MAS)
for testing asset tokenization and Decentralized Finance (DeFi). Dubbed Project
Guardian, Singapore aims to replicate the success of DeFi in blockchain
technology and how big banks can implement it.
The
MAS is also working on creating interoperable networks for digital assets. The
regulator recently released a framework on the measures to ensure that the
networks are safe and efficient. Additionally, the MAS recently unveiled
new measures for the Digital Payment Token service providers, Finance
Magnates reported.
DBS has launched a new solution that allows merchants in
China to collect payments using e-CNY, the country’s central bank digital
currency (CBDC). The banking giant has also completed the first transaction for
a client, a catering company in Shenzhen, on the new platform.
Additionally, the Singapore-based
banking and financial services firm outlined some the benefits of the new service
in an announcement today (Wednesday).
The e-CNY merchant collection
solution lets merchants settle payment transactions automatically into their e-CNY bank deposit accounts. The service works even with limited internet
connectivity and enables merchants to reconcile their financial reports. The
reports can be accessed through the bank’s digital platform, DBS IDEAL, DBS explained.
“By seamlessly
integrating a CBDC collection and settlement method into our clients’ existing
payment system, this will help position their business for a digital future
where consumers in China use e-CNY for their daily activities,” commented
Ginger Cheng, the CEO of DBS Bank in China. “This showcases our dual
commitment to making banking joyful for our clients while actively supporting
the development of China’s financial market innovation.”
Since the launch of
e-CNY in China, the CBDC has seen steady adoption by users. According to the data
shared by DBS, more than 13 billion e-CNY are in circulation. DBS said that the
currency is currently accepted across 26 cities and 17 provinces in China, and
the figures are expected to grow.
Growing CBDC Adoption?
A CBDC is a digital currency developed and regulated
by central banks as a digital representation of the fiat currencies. Unlike a
cryptocurrency, which is decentralized, a CBDC is centralized and backed by the central bank’s reserves.
DBS is one of the
financial institutions selected by the Monetary Authority of Singapore (MAS)
for testing asset tokenization and Decentralized Finance (DeFi). Dubbed Project
Guardian, Singapore aims to replicate the success of DeFi in blockchain
technology and how big banks can implement it.
The
MAS is also working on creating interoperable networks for digital assets. The
regulator recently released a framework on the measures to ensure that the
networks are safe and efficient. Additionally, the MAS recently unveiled
new measures for the Digital Payment Token service providers, Finance
Magnates reported.
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- Source: https://www.financemagnates.com//fintech/dbs-launches-cbdc-merchant-collection-solution-in-china/
