It’s not been a long while since Bloomberg reported that some sources provided information asserting the possibility of Macau’s moving away from deploying the Hong Kong money as its prime currency, opting to depend on China introducing digital yuan. This proclamation generated waves in the betting community. Everyone is becoming concerned. Considering the domination China always wanted to exert on that city, people find its stepping on the same route once Hong Kong did a lot disconcerting.
Though gambling regulator in Macau, the Coordination Bureau and the Gaming Inspection denied everything about this Bloomberg report indicating to more to the story that it is appearing. Sanford C. Bernstein brokerage along with some analysts have spoken up asserting the move toward digital yuan beneficial for the overall casino industry in Macau in the long run.
Hope for Future Benefit
These analysts have published a research report recently, which explains that a digital yuan as the base currency in Macau would be beneficial for both premium and the ordinary mass crowd. Those analysts have made this conclusion basing on the crackdown of China on cross-border transaction and payment. They believe that introduction of the digital yuan will facilitate those transactions and payments. At the same time, they will appease the authorities of China. China has been working for coming up with a system to crack down on betting and illegal payment activities recently. This attempt has been harder than ever and getting stricter with every day.
Analysts are still allocating resources and times researching the use of this Chinese digital yuan in Macau. It indicates that the rumour is not completely a rumour. A few shreds of evidence demonstrate the validity of the Bloomberg report. It seems highly possible, considering China’s current position on political control, Macau might hope for a change of terms for them during the time of casino concession renewal next year. However, this moment has nothing to prove the claim of Bloomberg report beyond gong doubt.
The only fact that has become evident is that the advent of digital yuan is not a fancy anymore, and it is very likely to be introduced in Macau soon in any form. Analysts say that authorities can go a long way to raise the probability of making yuan Macau’s standard currency to push the internalization process of the Chinese currency.