Macau to ‘study feasibility’ of digital currency in potential threat to casinos in world’s biggest gambling hub
- The Macau government plans to amend laws to regulate the issuance of a virtual legal tender, Chief Executive Ho Iat-seng told lawmakers on Tuesday
- Some are worried that the imposition of a traceable, government-linked currency will be the death knell for an industry already hobbled by the coronavirus and stricter rules around high-stakes gambling
Macau has moved a step closer to the potential introduction of a digital currency as it seeks to better combat money laundering and tax evasion in the world’s biggest gambling hub.
The government plans to amend laws to regulate the issuance of a virtual legal tender, Chief Executive Ho Iat-seng told lawmakers on Tuesday.
Although no formal plans have been announced on whether or how a digital currency would be implemented, some junkets – businesses that act as middlemen for Chinese high rollers who make up half the city’s gambling revenue – are worried the imposition of a traceable, government-linked currency will be the death knell for an industry already hobbled by the coronavirus and stricter rules around high-stakes gambling.
A number of casino operators have been approached by Macau’s regulator to discuss the feasibility of using a digital yuan to buy gambling chips, Bloomberg News reported in December.
The aim of introducing a virtual currency is to improve effectiveness in reducing money laundering, tax evasion and terrorism financing, according to Ho.