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Macau Plans to Change Financial Rules to Allow Adoption of 'Digital RMB'
Macau and officials are reportedly preparing to revise the region's financial rules to fully adopt the digital version of the yuan, which is currently being used by the Chinese government on a trial basis.
The move was revealed by Beijing's chief executive, Hoyat Seng, yesterday, about five months after Beijing added six jurisdictions to its list of countries testing blockchain-based innovation. The source elaborated that the app-based "digital yuan" currency will be controlled by the People's Bank of China, which will then allow the central government to track the movements of all cash and coins in circulation and get full details of the goods and services it buys.
It is the second country to launch a digital version of its currency, following a similar move by the Bahamas Central Bank last year. The introduction reportedly began in late 2019 with a pilot introduction in Shenzhen, Suzhou, Xi'an and Chengdu cities, and similar introductions were added to the financial centers Shanghai, South Island Hainan, Changsha, Qingdao, Xi'an and Dalian cities from October.
Macau will now seek to revise regulations on financial transactions so that residents can take advantage of the progress of the "digital yuan." Furthermore, a 63-year-old Macau official reportedly declared that such innovation was increasingly widely accepted and that local adoption would help former Portuguese residences comply with mainland China's policies.
"Macao has not reached this process yet, but it must follow the pace of the mainland Chinese government," he said. "We will continue to communicate with the People's Bank of China and begin a feasibility study on launching a 'digital yuan' in Macau." Therefore, it is necessary to add relevant legal provisions to allow the introduction of digital currency
The widespread adoption of the "digital yuan" currency could reportedly be a boon for Macau's 39 casinos, as local law enforcement authorities could more effectively eradicate activities related to money laundering, money lending and underground banking. Gambling enthusiasts in the city are now obliged to use cross-border transit stations to exchange Chinese cash for Hong Kong dollars, and the introduction of electronic alternatives could spell the end of WeChat Pay and Alipay payments apps.
Thursday, September 21, 2023