Macau and Hong Kong Take Major Steps Towards Digital Currency Adoption

Macau and Hong Kong are advancing their efforts to introduce digital currencies, aiming to enhance their financial ecosystems and adapt to global trends.

At an international financial conference, Macau’s Chief Executive, Ho Iat Seng, announced plans for the “digital Macau pataca” (e-MOP). The Macau Monetary Authority (AMCM) is collaborating with the People’s Bank of China to develop this digital currency. A prototype system is set to be demonstrated to the public by the end of the year. This initiative follows the Legislative Assembly’s approval in 2022, which established digital currency as legal tender in Macau, alongside traditional forms of money.

Ho emphasized the importance of integrating advanced technology into Macau’s currency system to align with the region’s economic development goals. He also mentioned that the AMCM would draft tailored laws and regulations to support the e-MOP’s rollout. To explore practical applications, the authority plans to conduct “sandbox testing” of the digital currency.

“In 2023, the trade volume between China and Portuguese-speaking countries exceeded US$220 billion, with the scale of cooperation continuously expanding, providing broad development opportunities for Macau’s platform to serve China and the Portuguese-speaking countries,” Ho was quoted as saying in a report published by the Macau Post Daily.

Meanwhile, the Hong Kong Monetary Authority (HKMA) launched Phase 2 of its e-Hong Kong dollar (e-HKD) pilot program on September 23, 2024. According to a statement released by the HKMA, this phase includes the participation of 11 firms from various sectors, focusing on innovative uses for digital money, such as tokenized deposits and offline payments. The program, now part of the expanded Project e-HKD+, aims to address practical challenges related to the digital currency ecosystem.

The integration of digital currencies could have significant implications for Macau’s gaming industry, as the Hong Kong dollar is commonly used for gambling transactions. In 2022, the Macau government announced its plan to adopt digital currency as a legal tender. However, no concrete details have been released regarding its implementation.

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