Macau may test issuance of virtual currency

The Macau Government believes a virtual currency could help combat money laundering and tax evasion.
The Macau Government believes a virtual currency could help combat money laundering and tax evasion.

Analysts believe the issuance of virtual currency could transform Macau’s gaming industry as junket operators will no longer be needed.

Macau.- As part of its fight against money laundering and tax evasion, the Macau government has begun to seriously study the possibility of testing the use of a virtual currency.

Chinese authorities have chosen Macau as a testing ground together with Hong Kong.

The people’s Bank of China (PBoC) has announced it is working on the technical testing of using virtual currency for cross-border payments between the Chinese mainland and Hong Kong.

There are currently six cities in China where digital currency is active, but the Covid-19 pandemic accelerated the country’s interest in expanding use.

According to the Macau Gaming Research Association, the implementation of a virtual currency could mark a before and after for the gaming industry as customers could buy chips instantly using RMB without the need to convert to HKD.

BNN Bloomberg has reported that junket operators are worried as this new implementation could render them unnecessary as a virtual currency could aid the flow of money for mass and premium mass play.

Macau’s junket operators have already been deeply affected by travel restrictions and China’s restrictions against cross-border gambling services.

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