Despite the fact that the news is not confirmed, casino operators have recorded losses in reaction to the rumors.
The gambling industry in Macau is declining amid the rumor that the digital yuan may be introduced to the sector. Already, the gambling industry has been suffering losses as a result of the coronavirus pandemic.
According to a Bloomberg report, Macau’s regulator, the Gaming Inspection and Coordination Bureau, has approached local casino operators concerning introducing digital yuan. Currently, people purchase casino chips with Hong Kong dollars. Citing reliable sources, the report said that the city’s regulators are examining the possibilities of buying casino chips with digital yuan instead of the Hong Kong dollars.
Notably, there has been no official announcement regarding introducing China’s digital currency to Macau’s gambling industry. Despite the fact that the news is not confirmed, casino operators have recorded losses in reaction to the rumors.
Macau’s largest junket operator Suncity Group Holdings Ltd. (HKG: 1383), lost about 2.8%. Also, casino operator Galaxy Entertainment Group (HKG: 27) declined 3%. Galaxy Entertainment Group Ltd. has also lost 1.53% over the last five days. In addition, SJM Holding Ltd. (OTC: SJMHF) declined by 1.4%, while Wynn Macau (HKG: 1128) lost 2.5%.
Macau Junkets Operators React to Digital Yuan Incorporation
Amid the rumor of introducing China’s central bank digital currency (CBDC) to Macau’s gaming industry, some junkets are already abandoning the industry. Bloomberg noted that Junkets are middlemen businesses for China’s high rollers. Also, the Chinese high rollers represent half of China’s gambling revenue.
According to the junkets, the incorporation of the digital yuan may lead to further losses of gambling revenues in Macau. Already, Macau lost $27 billion in revenue in 2020 as a result of the global health crisis. As the economy is struggling to rebound, the introduction of the digital yuan may trigger more declines.
However, Macau’s Government Information Bureau has discredited the news in a statement published on the 2nd of December. The regulators said that the rumor about introducing digital yuan in gaming casinos is false.
Upon a successful introduction of the digital yuan into casinos in Macau, China’s central bank will have access to the capital flowing into the gaming sector.
The sources further said that the regulators are not considering digital payment platforms AliPay and WeChat. As stated in the report, AliPay and WeChat will not assist the government in tracking capital flows.
Referring to the digital yuan- Macau casinos rumor, Junket service provide Eric Leong told Bloomberg:
“Everyone in this industry is trying to survive however they can. If the water is too clean, there’ll be no fish. The big gamblers will go away if casinos need to be that transparent.”
Already, the People’s Bank of China (PBOC) has ordered the trial of digital yuan in Suzhou, Chengdu, Shenzhen, Xiong’an, and at the upcoming Winter Olympics in 2022. At press time, there is no official announcement for launching digital yuan for public use.
Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.
