The introduction into Macau of a digital version of the yuan currency currently being trialled by the government of China should prove to be a long-term positive for the city’s collection of almost 40 casinos.
According to a report from GGRAsia, this is the opinion of Sanford C Bernstein Limited analyst Vitaly Umansky some two weeks after officials in the enclave revealed that they would be amending local financial rules so as to allow for the complete adoption of the blockchain-powered innovation. The source detailed that the app-based ‘digital yuan’ currency is set to be controlled by the People’s Bank of China and will allow the central government to trace the movement of all cash and coins in circulation and know the full details of goods and services being purchased.
Umansky reportedly declared that such an advance ‘should be a long-term positive’ for Macau’s lucrative casino industry unless it became ‘the only way to actually buy chips’ and had its introduction accompanied by ‘restrictive limits.’ He announced that the ‘digital yuan’ could also ‘be the icing on the cake for easing the customer experiences’ and allow properties to save ‘significant costs’ currently associated with changing the native cash of foreign players into Hong Kong dollars.
Reportedly read a statement from Umansky…
“The cleaning up of Macau’s money flows, easier access to renminbi transactions in the city and disintermediation of junkets would be a positive driver for continued growth in stable mass and premium-mass gambling segments.”
China is reportedly the second nation to begin rolling out a digital version of its currency following an analogous move from the Bahamas Central Bank last year. This introduction purportedly began via a late-2019 pilot for the cities of Shenzhen, Suzhou, Xiong’an and Chengdu before being supplemented from October with similar debuts for those in the financial hub of Shanghai, the southern island province of Hainan and the cities of Changsha, Qingdao, Xi’an and Dalian.
Umansky reportedly went on to proclaim that Macau’s adoption of the ‘digital yuan’ currency may allow gamblers to purchase chips directly from a casino cage or instantly at a gaming table and could even ‘get rid of the need for chips completely.’ The analyst furthermore purportedly disclosed that ‘even Internet access may not be necessary’ for those utilizing the digital currency with future punters simply needing ‘a hardware digital token smaller than a casino chip.’
Finally, Umansky reportedly divulged that the widespread adoption of the ‘digital yuan’ currency would help law enforcement officials in Macau to more effectively stamp out activities connected with money laundering, loan sharking and underground banks. Gambling aficionados in the city currently take advantage of cross-border transfer stations in order to swap their Chinese cash for Hong Kong dollars while the introduction of an electronic alternative could purportedly moreover spell the end for the WeChatPay and Alipay payment apps.