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Macau Shifts Closer to The Potential Establishment of a Digital Currency

source-logo  cryptoknowmics.com  + 3 more 14 April 2021 17:00, UTC

Macau has recently revealed that it has moved a step closer to the capable introduction of a digital currency. It is looking forward to combat money laundering and tax evasion in the biggest gambling hub of the world. Ho Iat Seng, the Chief Executive of the firm said that the government of Macau has plans to revise laws to regulate the issuing of a legit virtual tender. 

Macau Moves Closer to The Potential Introduction of a Digital Currency 

The government will be working with the central bank of China to examine the practicability of issuing a digital currency.

Although there is no formal announcement that has been made on whether or how a digital currency would be executed as yet. 

Businesses that act as middlemen for Chinese high-rollers who make up half the gambling revenue of the city are worried about the inflicting of a traceable currency that is liked to the government.

In accordance with the report by Bloomberg, numerous casino, operators have been approached by the regulator of Macau to discuss the practicability of utilizing a digital yuan to purchase gambling chips.

According to Ho, the goal of introducing a virtual currency is to ameliorate the effectiveness in lessening money laundering, tax evasion, and terrorism financing.

The plan comes amid a slow recovery from the flump in casino revenue caused by the pandemic travel curbs that kept profitable Chinese gamblers away.

Influence of The Potential Launch of a Digital Yuan

The experience casino analysts still require more details to evaluate the impact of the capable introduction of a digital Yuan. 

However, the fact that the necessary usage of a digital currency as the only option for purchasing gambling chips would be negative for Macau casinos can not be ignored.

Most importantly, it will be eliminating the junket system, in accordance with a previous note by Stanford C. Bernstein analysts led by Vitaly Umansky.

Moreover, The People’s Bank of China has tried out a digital Yuan in various cities, putting the bank on track to be the first major central bank to issue a digital currency.

cryptoknowmics.com

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