Singapore’s DBS has implemented a payments collection and settlement service for Chinese merchants that processes transactions in the nation’s retail central bank digital currency, E-CNY.
DBS is the first foreign bank in China to integrate the CBDC into its merchant payments portfolio. Through its business banking platform DBS Ideal, DBS processes transactions and offers aggregated merchant reports with itemized e-CNY transactions. Since its pilot introduction in April 2020, e-CNY usage in China has increased gradually.
There were around 13.6 billion e-CNY in use as of December 2022. In China, the CBDC is presently recognized in 26 cities and 17 provinces, and as the program steadily extends to additional areas, adoption is anticipated to increase.