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DBS Bank, a leading Singapore bank in China, has launched a digital yuan merchant collection solution, marking the first DBS client transaction in digital yuan in China.
This solution allows DBS’s corporate clients in China to process payments in digital yuan, the country’s central bank digital currency, automatically depositing digital yuan into their respective accounts.
DBS’s digital yuan collection service introduces a method for businesses to collect digital funds, effectively eliminating the need for manual settlement processes. In addition, it opens up the opportunity for companies to accept digital payments, even in areas where internet connectivity is low.
Businesses can easily reconcile transactions through detailed merchant reports that track digital yuan transactions, all accessible through DBS IDEAL, the bank’s specialized business banking platform. In addition, it is jointly managed by DBS and UnionPay Merchant Services, with DBS onboarding this solution.
DBS Bank’s Group Head of Global Transaction Services, Lim Soon Chong, stated that this payment solution represents a significant leap towards DBS’ goal of providing instant, seamless payments around the clock for those its customers, “enabling quick and hassle-free 24/7 payments for our customers.”
Since its experimental debut in April 2020, the adoption of digital yuan has seen a steady increase in 26 Chinese cities and 17 provinces, with more than 13.6 billion digital yuan in circulation since then. December 2022.
DBS China is participating in Project Guardian, an initiative created by the Monetary Authority of Singapore to create an interoperable framework for cross-border payments:
“Under this model, all participants interact with a common ledger […] It allows digital assets to be exchanged directly without the need for bilateral setups between organizations or other networks.