The adoption of "digital yuan" currency could be advantageous for Macau casinos.
A digital version of the yuan, which the Chinese government is presently testing in Macau, should prove to be beneficial for the city's nearly 40 casinos over the long term.
This is the view of Sanford C Bernstein Limited analyst Vitaly Umansky, according to a story from GGRAsia, which was published about two weeks after officials in the enclave announced that they would be changing local banking regulations to permit the full implementation of the blockchain-powered innovation. The insider explained that the People's Bank of China will be in charge of the app-based "digital yuan" currency. This will provide the Chinese government complete knowledge of the goods and services being purchased as well as the ability to track the movement of all coins and cash that are in circulation.
According to reports, Umansky stated that such an improvement "should be a long-term positive" for Macau's wealthy casino industry—but only if it wasn't made "the only way to actually buy chips" and didn't come with "restrictive limits." He stated that the 'digital yuan' may also 'be the icing on the cake for improving the client experiences' and allow properties to save'significant costs' currently involved with transferring the local currency of overseas players into Hong Kong dollars.
read a statement allegedly made by Umansky...
For the stable mass and premium-mass gaming categories to continue growing, "Macau's money flows need to be cleaned up, renminbi transactions need to be easier to access in the city, and junkets need to be disintermediated."
According to reports, China is the second country to start implementing a digital form of its currency after the Bahamas Central Bank did so last year. This introduction is said to have started with a pilot programme in late 2019 for the cities of Shenzhen, Suzhou, Xiong'an, and Chengdu before being supplemented starting in October with similar debuts for the financial centre of Shanghai, the southern island province of Hainan, and the cities of Changsha, Qingdao, Xian, and Dalian.
According to reports, Umansky went on to say that Macau's adoption of the "digital yuan" currency may enable players to buy chips directly from a casino cage or instantly at a gaming table and may even "get rid of the need for chips completely." The expert further allegedly stated that future gamblers would just require "a hardware digital token smaller than a casino chip" in order to use the digital money, suggesting that "even Internet access may not be necessary."
The widespread use of the "digital yuan" currency, according to Umansky, will enable law enforcement officers in Macau to more successfully combat crimes related to money laundering, loan sharking, and underground banking. Gambling enthusiasts in the city now use cross-border transfer stations to exchange their Chinese currency for Hong Kong dollars, and the advent of an electronic alternative may also bring an end to the popular payment apps WeChatPay and Alipay.