Digital RMB could benefit Macau gaming, Bernstein says
Bernstein’s analysed how going cashless might affect Macau’s gambling economy, and its analysts believe it could revitalise the sector.
Macau.- Analysts from Bernstein believe China’s digital RMB could become an essential part of a cashless gaming infrastructure in Macau. It believes the process could potentially be more streamlined than that in jurisdictions that aren’t working off a central bank-backed digital currency.
Bernstein’s analysts argue that the transparency of the digital renminbi (digital RMB) will allow China to ease its capital control on Macau, which may provide Macau’s gaming industry with a boost.
“In most other gaming markets, the cashless gaming would require the traditional deposit and withdraw from bank accounts (subject to bank processing and transfer limit), transactions via third party payment platforms and additional charges (i.e. Visa/MasterCard), and further subject to the integration between the casino’s own financial ecosystem and its players’ digital wallets opened with the casino,” explains Bernstein’s Vitaly Umansky.
“However, in the case of Macau, digital RMB could potentially become a one-stop solution for both the casino and customers, dis-intermediate payment providers, and simplify the process of currency and chip exchanges and eliminate any associated transaction costs.”
He also suggested that digital RMB could help to prevent certain crimes and fraud. The greater transparency associated with a universal digital currency could make gambling safer and prevent money-laundering attempts. Lastly, he believes the adoption of digital RMB could eventually lead to a relaxation of China’s cross-border capital controls.
However, experts warned that digital RMB may impact demand at the higher-end level of play and “discourage high gambling spending as Chinese customers may think their funds used for gambling will be ‘under surveillance’.”
