DBS Bank's China subsidiary, DBS Group China, has launched a payment system to support China's central bank digital currency (CBDC), the e-CNY.
DBS Bank is Also Entering Into the World of Digital Assets
DBS Bank's China subsidiary, DBS Group China, has launched a payment system to support China's central bank digital currency (CBDC), the e-CNY.
The platform would enable companies to receive payments from clients in e-CNY and have settlements instantly placed into fiat bank accounts, according to the announcement by the largest bank in Southeast Asia. The technology has already undergone successful testing with an e-CNY collection from a Shenzhen catering company. The platform will only be accessible to Chinese corporate clients.
With the CBDC currently being used in 26 Chinese regions across 17 provinces since the e-CNY's introduction in 2019, China has progressively increased its use across its economy. For instance, the bus network in the city of Jinan fully accepts digital yuan payments, while Changshu started paying civil servants’ salaries using the CBDC. This comes amidst the crackdown on crypto trading and mining by the Chinese government in past years. However, the recent openness of crypto regulations in Hong Kong may signal a changing stance by the authorities.
DBS Bank is also entering into the world of digital assets by assisting China in developing their digital currency. Since 2021, DBS has run a cryptocurrency custody service that has given its high-net-worth clients access to the bank's vaults to hold tokens like Bitcoin and Ethereum. DBS Bank CEO Piyush Gupta has also mentioned that he bought Bitcoin, believing in its proposition as a store of value.
