Macau, a China-based significant administrative zone for administration and a hub of a developing casino industry, pursues turning digital currency into legal tender. This was declared on the behalf of Macau’s Executive Council on Friday.
Macau Proposes Draft Law to Make Digital Currency a Legal Tender
Though the particular digital currencies have not been named by the proposal, it is witnessed amid the enthusiastic release of the central bank digital currency (CBDC) – or e-CNY – by China. This could likely fortify the legal and economic interaction between the city as well as the mainland. In the meantime, the insiders of the gaming market within the jurisdiction are concerned about if the respective legislation would permit the utilization of digital currencies in the ambitious casino scenario of the city.
The bill, additionally suggests punishing the rejection of the legal tender in terms of an administrative offense. In this case, the offenders will also be liable to pay fines ranging from 1,000 MOP (nearly US$123.70) to 10,000 MOP (nearly US$1,237). Macau is targeting the expertise of China in creating the digital yuan thereof to potentially launch a CBDC, to establish the CBDC system. As per Lei Wai Nong, the secretary for finance and economy, this system would depend on the national technical power of China.
Some are of the view that Macau is categorized as a worldwide gambling capital. The region is additionally considered to be the biggest casino industry in the world, contributing more than 50% of the GDP thereof at nearly US$28.1B in 2019. As noted in the draft law, Macau’s legal tender takes into account, not just the conventional coins and notes, but additionally the digital currency with the same position.
No elaborative information has been included in the respective draft which will be submitted by the authorities of the country to its Legislative Assembly which would scrutinize it. Apart from that, no explanation has been either provided on if the casinos of Macau will be allowed to utilize the respective digital currency. If these entities are legitimately able to use that digital currency, the city’s gaming industry will go through significant modifications. The reason behind this is that the authorities will have the ability to see the financial transfers with more accuracy.
In the words of Lam Kai Kuong (an experienced gaming practitioner) considers that – with the use of digital currency in casinos – the regulation would become easier for the government. According to Lam, if the digital Renminbi of China is distributed as legal tender in Macau, it will bring more transparency to the mainland visitors’ spending patterns.
Casinos Might Get a Negative Effect Due to a Greater Regulation
However, in the case of casinos, he thinks that a negative effect will be witnessed as the rich gamblers within the mainland will not be capable of taking sums for gambling to Macau. On the other hand, he added, in the case of the circulation of RMB in the city, the mainland authorities will have better grounds to implement regulations over the particular amount permitted for the gamblers to be taken to Macau.
