The Monetary Authority of Macau (AMCM) has revealed that it plans to build a prototype system with basic functions for the implementation of the new “Digital Macau Dollar” by the end of the year. It will also demonstrate to the public the functions and applications of the digital currency in celebration of the 25th anniversary of Macau’s reunification with the motherland, it explained.
“To ensure the security and stability of the monetary system of Macau, the AMCM will conduct sandbox tests with the prototype system to explore the application scenarios of the Digital Macau Dollar, and carefully examine various types of risks, so as to formulate complementary rules and regulations that suit the actual market situation in Macau, and to properly prepare for the official launch of the Digital Macau Dollar in the future in all aspects,” it said.
Local academics told Inside Asian Gaming they expect the Digital Macau Dollar to mirror the model used in mainland China for the recent rollout of a digital RMB.
“The digital currency is backed by the central bank and the government, and any incidents will be controlled and backed by the government,” said Jack So Yuk-Chow, Chair Professor, Faculty of Business at Macau University of Science and Technology.
“The use of electronic payment is already popular in Macau, but this is only a payment system, and the payment organization does not have the ability to issue banknotes.
“Digital RMB has been trialed for many years ago and is issued by the central bank and subject to the control of the central bank and the government. Moreover, the digital RMB is real-name based, and there is a certain degree of control over the flow of funds.”
Asked if the implementation of a digital currency could impact the flow of funds into Macau’s casinos, So noted that casino chips have already been “digitized” to a certain extent.
“The key is whether the digital MOP will also have a real-name system, which will be more effective in combating money laundering and will have a positive impact on the gaming industry,” he said.
“But the biggest impact of the digital MOP is the relationship between the central bank and commercial banks, and whether there will be competition with the banks, including the relationship between currency deposits and interest rates.”
