Despite the growing popularity of digital Renminbi (RMB), Macau’s thriving casino industry is still not ready to completely integrate this digital money into its operations. Ricardo Siu Chi Sen, an associate professor of business economics at the University of Macau, recently stated that it will most likely take at least five years for casinos to effectively integrate the People’s Republic of China’s official currency onto their gaming floors.
Casino operators in Macau have been considering the usage of digital RMB on their gaming floors since it provides players with a more convenient and cashless wagering alternative. This approach may reduce the need for cash transactions, expediting the betting process and improving the overall casino experience.
Mr. Siu, on the other hand, highlighted that such a transformation requires a well-managed process that may take up to a decade to complete. While operators see the potential benefits of using digital RMB, widespread acceptance of this currency in the casino industry is unlikely in the near future.
In April 2020, China launched a significant trial of the digital RMB, also known as digital yuan, integrating the currency into the monetary systems of four major cities. The Chinese government sees digital RMB as a weapon for fighting money laundering, terrorist financing, and illegal gaming. Despite skeptics’ fears about potential financial transaction surveillance and monitoring, the People’s Bank of China (PBOC) has assured users of “controllable anonymity” during transactions.
In response to the increasing popularity of digital currencies, the Macau government announced plans to recognize digital RMB as legal cash by 2022. Following that, in June 2023, Macau’s Legislative Assembly passed legislation allowing the city to launch its own digital currency in the future. While details about the currency’s possible use at casinos remain limited, operators have embraced the concept due to its various advantages, including the ability to conduct cashless gaming.
Currently, gamblers at Macau casinos wager in Hong Kong dollars. Hong Kong is a key component of China’s Cross-Border Interbank Payment System (CIPS), which functions in a manner similar to SWIFT. Given the current reliance on Hong Kong dollars, Mr. Siu believes there is still a long way to go before casinos can completely adopt digital RMB for betting purposes.
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