e-CNY, China’s CBDC, is currently accepted across 26 cities and 17 provinces
DBS has launched a solution to enable businesses in mainland China to receive central bank digital currency (CBDC) payments.
The solution allows corporate clients of DBS China to collect payments from their customers in e-CNY, China’s CBDC, into their CNY bank accounts.
This will allow businesses to collect the new form of digital money without going through a manual settlement process, and to receive payments in areas with limited internet.
China began the pilot phase of its CBDC in 2020. As of the end of last year, there were more than e-CNY13.6b (US$1.9b) in circulation.
The digital currency is currently accepted cross 26 cities and 17 provinces in the country.
The bank completed its first transaction with the e-CNY for a client, through a catering company in Shenzen.
Ginger Cheng, chief executive officer of DBS Bank China, commented: “By seamlessly integrating a CBDC collection and settlement method into our clients’ existing payment systems, this will help position their business for a digital future where consumers in China use e-CNY for their daily activities.
“This showcases our dual commitment of making banking joyful for our clients while actively supporting the development of China’s financial market innovation.”
Lim Soon Chong, group head of global transaction services at DBS Bank, added: “The e-CNY merchant collection solution strengthens DBS’ position as an innovator in digital payment solutions, and marks yet another milestone in our vision of enabling instant and frictionless 24/7 payments for our customers.
“We look forward to building on this launch to explore new digital payment solutions, such as cross-border CBDC payments.”
Currently, 130 countries are exploring a CBDC, and 64 of those are in an advanced phase, either development, pilot or launch.
China is one of 11 countries that has launched. It currently reaches more than 260m people and is being tested in over 200 scenarios, which include public transport, stimulus payments and ecommerce.
Learn more about CBDCs: To CBDC or not to CBDC? That is just one question