Singapore’s DBS Bank Adds Support for the Digital Yuan (e-CNY)

The largest bank in Singapore, DBS Bank opened for clients the ability to receive payments in the digital yuan (e-CNY).

The platform launched recently by the company allows merchants to automatically transfer amounts in Chinese CBDC to bank deposit accounts. According to the bank, at least one client has already used the option.

In February, DBS Bank said it planned to apply for a license to provide cryptocurrency services in Hong Kong — a special administrative region of China.

In Singapore, the bank has held similar regulatory approval since 2021. The financial company launched in the city-state an institutional-investor-oriented cryptotrading platform DDEx.

DBS Bank also became a participant in a pilot project to study the potential of DeFi for wholesale funding under the auspices of the Monetary Authority of Singapore.

In China, authorities continue to take measures to popularize the digital yuan. According to reporters, during the Lunar New Year week municipalities disbursed 180 million e-CNY (~$26.5 million) in subsidies and coupons for this purpose.

At the end of 2022, the People”s Bank of China included the CBDC in the monetary base. At that time, 13.62 bln e-CNY (~$2 bln) were in circulation, equivalent to 0.13% of the total. Former director of research at the central bank Se Pin described the low interest in the digital yuan.

In May 2023, BNP Paribas China opened for corporate clients the ability to conduct e-CNY operations.