Macau will test digital currency.

Macau will test digital currency.

 This year, Macau might start testing a virtual currency.  Ho Iat Seng, the CEO, saw it as a component of a long-term strategy for a digital economy.

 A bill granting digital currency the same legal standing as coins and banknotes was passed by local politicians last year.  The People's Bank of China (PBOC) is researching and developing the tender, according to a September confirmation from the Macau Monetary Authority.

 By the end of 2024, the PBOC should be prepared to demonstrate a prototype with "basic functions," according to Ho.

 Getting caught up with the world economy
 In 2022, officials initially outlined their aim to develop and distribute the virtual pataca, or e-MOP.  They said in a memo to the Legislative Assembly that the action will bring Macau up to speed with "neighbouring jurisdictions, namely mainland China and the Hong Kong SAR" and integrate it into the global digital economy.

 Additionally, it aligns with the government's 2023-launched "1+4" program.  By fostering the growth of four emerging industries—finance, technology, health, and meetings and conventions—the five-year strategy aimed to wean the city off of its need on gaming.

 Ho stated that the plan "will essentially reverse the trend of one industry overshadowing other sectors" in a 2023 policy address.  Additionally, it reaffirms Macau's goal of becoming a "smart city," where technologically gathered data informs local governance.

 Casinos in Macau are dominated by HKD.
 Although Hong Kong dollars are most frequently used in casino transactions, patacas are Macau's official currency.

 It is believed that China's proposal for a digital yuan, or renminbi, will help stop the financing of terrorism, tax evasion, and money laundering.  Gaming specialists think "Beijing would welcome renminbi play in Macau," according to industry critic Muhammad Cohen.

 "Digital RMB would lessen capital flight through illicit money transfers from the mainland, which Beijing views as the most detrimental financial consequence of Macau casinos," Cohen said.

 Because of crackdowns on illegal money transactions and cross-border gaming, VIP volumes have decreased.  But according to a recent Citigroup research, big spenders continue to spend large.

 According to the table survey, VIP gamblers' average wagers have significantly increased.  A total of HK$43.3m (£4.8m/€5.8m/$6.5m) was wagered by 228 so-called "whales" through September, a 43% increase over the same period in 2023.

 The Chinese-Portuguese pataca, meanwhile, continues to be the currency of Macau.  Businesses are required to continue accepting physical cash as payment under the digital currency regulations.