Macau is stutter-starting its way towards a digital currency, with an official from the Monetary Authority of Macao (AMCM) indicating on Monday that “Macau is pragmatically advancing towards the creation of the ‘Digital Pataca’.”
No specific dates were outlined towards the possible implementation or trial run of the digital currency.
The Macau Pataca is the official currency of the Special Administrative Region (SAR), however the currency used in the city’s casinos is the Hong Kong Dollar.
Analysts had previously speculated that the popularization of China’s “Digital Renminbi” – also known as e-CNY – could have a carryover effect on Macau and could potentially even be introduced on the city’s gaming floors. However, the government has given no indication that it would consider altering the use of the Hong Kong Dollar in Macau’s casinos in the near future or allowing any digital currencies in gaming.
In statements during a conference on cross-border applications of Central Bank Digital Currencies (CBDCs) on Monday, the Chairman of the Board of Directors of AMCM, Simon Vong Sin Man, expressed hope that an international platform could be created for cross-border applications for CBDCs, focusing on Macau’s role as a platform between China and Portuguese-speaking countries.
Macau joins Project mBridge
At the conference, the Deputy Governor of the People’s Bank of China (PBOC) indicated that China has already created an “ecosystem for the Digital Renminbi.” Lu Lei noted that Macau has joined Project mBridge – a multiple central bank digital currency blockchain-based platform between the PBOC, Hong Kong Monetary Authority, AMCM, Central Bank of the UAE (CBUAE) and the Bank of Thailand.
The official highlighted that mBridge is expanding its membership and activities, hoping that Macau joining the project will also help link the Digital Pataca to its cross-border bilateral liquidation platform “Shubida” (CBETS) – Cross-border Bilateral E-CNY Settlement – allowing further digital finance links between China and Portuguese-speaking countries.
Macau’s joining Project mBridge involves 11 local banks, with the platform coming online on 2 June. Alongside this project, the AMCM highlighted that the Digital Pataca will next undergo testing related to electronic governance, public transport and at education institutions, while being linked to Macau’s “Simple Pay” app.
