Using DEM to displace Plane to the actual positions

Good day all .
I have a DEM (Digital Elevation Model) , a TIF with elevation value for every pixel. My intention is to use this to create a terrain but i want it to be a real representation of the actual values , for example if the coordinate X:0 Y:0 has a value 1200 i want the pixel X:0 Z:0 on the plane to be displaced by exactly 1200units in Y (Elevation) , i want the same for all pixels .

My Attempt: Currently i have converted the TIF to a png by saving a screenshot , and applied it directly to the plan as a displacement map , but the issue now is on positioning , i want each point on the plane to be displaced by the actual value on the DEM. Is there a way i can use displacement scale and other parameters to achieve this? Or what is the correct wat to achieve this ?