DBS Bank Introduces Innovative e-CNY Merchant Service
DBS Bank has launched an e-CNY-based merchant settlement service as part of the city-state's push into tokenization.
The service automatically settles client payments in e-CNY into corporate customers’ accounts, benefiting businesses in regions with limited internet availability.
DBS China’s CEO, Ginger Cheng, expects rapid adoption of the technology, with strong interest already shown by clients. The first successful implementation involved a catering company in Shenzhen. Integrating CBDC collection and settlement into existing payment systems positions businesses for a digital future where Chinese consumers use e-CNY for daily activities.
The e-CNY payments are part of an extended trial of asset tokenization by the Monetary Authority of Singapore and major banks. The trial included exchanging tokenized Japanese yen with US dollars in a permissioned Aave pool.
China’s central bank currency, the e-CNY, has gained traction since its pilot in April 2020. It is accepted across 17 provinces and 26 cities, with President Xi Jinping exploring its potential as an alternative to the US dollar in international trade with Russia.
The Chinese government appointed a Communist Party member as the top official at the People’s Bank of China, signaling a seriousness in eliminating cryptocurrencies. The appointee, Pan, known for his criticism of Bitcoin, may become the central bank governor.
READ MORE: Belarus Tightens Grip on Cryptocurrency Transactions
Project Guardian focuses on improving payment efficiency through blockchain technology, enabling faster settlements and round-the-clock operation outside of banking hours. JPMorgan’s JPM Coin facilitates dollar and euro settlements between merchants and clients anytime.
Singapore’s purpose-bound money protocol offers flexible arrangements between clients and merchants. For example, clients can settle a merchant account upon receiving satisfactory goods or services.
The Monetary Authority of Singapore released new proposals for digital asset exchanges, requiring crypto exchanges to keep client funds separate from corporate funds and maintain transaction records.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
