tl;dr
Macau plans to launch a retail central bank digital currency (CBDC) and connect it to mainland China’s digital yuan and Hong Kong’s e-HKD. The Macau government is collaborating with the Digital Currency Research Institute of the People’s Bank of China (PBoC) to develop the e-pataca. The prototype is...
Macau Plans to Launch CBDC and Link It to Digital Yuan, e-HKD Macau Plans to Launch CBDC and Link It to Digital Yuan, e-HKD
Macau intends to launch a retail central bank digital currency (CBDC) and connect it to mainland China’s digital yuan and Hong Kong’s e-HKD. The Macau government is collaborating with the Digital Currency Research Institute of the People’s Bank of China (PBoC) to develop the e-pataca. The prototype is expected to be launched during the celebration of the 25th anniversary of Macau’s handover. The e-pataca aims to facilitate local and international digital payments, potentially impacting the region's gambling industry.
Macau is a Special Administrative Region (SAR) of China and operates under the 'one country, two systems' principle, with its own economic and legal system independent of mainland China. The pataca, Macau's currency, is not issued by a central bank but by commercial banks. The Bank of China (BOC) will oversee the initial stage of the e-pataca, with Banco Nacional Ultramarino (BNU) expected to join later on.
Lei Wai Nong, the Secretary for Economy and Finance, emphasized the importance of CBDC for Macau, citing the surging electronic payments in recent years. The integration with the digital yuan and the e-HKD is expected to lay the foundation for international payments and create opportunities for the Greater Bay Area.
Macau's gambling industry, which contributes around 40% of its GDP, is a significant part of its economy. The impact of the e-pataca on this industry, known for its reliance on privacy for gamblers, remains unclear.
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