Macau Proposes To Make CBDC Legal Tender

The city of Macau, a Chinese special administrative territory with a robust casino sector, is pursuing legal tender status for digital currencies, the Executive Council of Macau stated on Friday.

While the plan does not mention any specific digital currencies, it comes in the midst of China’s ambitious deployment of its central bank digital currency (CBDC), the digital yuan or e-CNY, and has the potential to enhance the city’s economic and legal linkages with the mainland.

Meanwhile, gaming industry experts are buzzing over whether the law would enable digital currencies to be used in the city’s thriving casino sector.

The measure, titled Legal regime for the creation and issuance of currency, also proposes making refusal to recognize legal cash an administrative infraction punishable by fines ranging from 1,000 MOP ($123.70) to 10,000 MOP ($1,237).

In an effort to build up the CBDC system relying on national technological power, Macau’s secretary for economics and finance, Lei Wai Nong, stated in June that the city-state is turning to China’s experience in creating its digital yuan.

Macau, nicknamed the gambling capital of the world and Monte Carlo of the East by some, is home to the world’s biggest casino sector, accounting for more than half of the city’s GDP of around $28.1 billion in 2019.

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