According to the Chief Executive of Macau Ho lat Seng, the government is working on a law that will allow the use of China’s digital yuan in order to combat tax evasion and money laundering in the gambling hub.
‘We will keep communication with the People’s Bank of China and start a feasibility study around launching the Digital RMB in Macau. Therefore, we need to add provisions in relevant law to allow for the introduction of digital currencies,’ he stated during Macau’s legislative assembly last April 13.
Ho further explained that the introduction of digital currency will aid Macau in its fight against tax evasion and could potentially overthrow the country’s fiat currency if the authorities allow it.
On the other hand, analysts at one of the leading brokerage firms in the world, Sanford C. Bernstein, indicated that the government of Macau would have to deal with a lot of processes and expressed their concern for its safety.
‘Digital RMB would allow greater government scrutiny and control over money flows. But it would also allow easier money transfer,’ a team of Bernstein analysts stated at a press release with media company Inside Asian Gaming (IAG).
In CoinGeek’s latest reports, casinos in Macau expressed their concerns on the adoption of China’s fully traceable digital currency and believe the move may significantly harm the financial security of the country.
Despite the concerns of various industries, there are also major companies who believe the adoption of China’s digital yuan could help with Macau’s economic recovery from the pandemic.
According to IAG’s high ranking official Victoria White, the adoption of the digital yuan could help Macau’s tourists since it will improve cash transactions, currency exchange and other related costs.
‘Ultimately, this could boost overall consumer spending in the mass and premium mass markets, which are the precise segments that have been most affected by the drop in footfall and visitations since the start of the COVID-19 pandemic,’ White added.
Last April 14, business and financial news firm Bloomberg reported that the government is still discussing the risks and benefits that they will face once they finalize the legislation.
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