The prototype of Macau’s digital currency (e-MOP) will be revealed before year-end, the Chief Executive (CE), Ho Iat Seng, said yesterday morning during the opening ceremony of the 2nd Conference of Central Bank Governors and Financial Officials between China and Portuguese-speaking Countries.
In his speech, the CE announced that the e-MOP prototype will be unveiled before the end of this year, presenting basic features that will lay the groundwork for future applications and uses.
Ho hinted that the release would occur as part of the celebrations around the 25th anniversary of the Macau handover, which takes place on Dec. 20.
“This edition of the conference will be a platform for the exchange of ideas concerning financial cooperation between China and Portuguese-speaking countries, Macau’s role as a Sino-Portuguese Financial Services Platform, and the implementation of central bank digital currencies, a hot topic that attracts great attention from central banks around the world,” the CE said. “Given the global trend of central bank digital currency development, the Monetary Authority of Macao (AMCM), with the support of the People’s Bank of China, is co-operating with the Digital Currency Institute of the People’s Bank of China to develop a research and development (R&D) project to create the Macau Digital Pataca. AMCM also plans to hold a public presentation of the prototype system of the e-MOP later this year, in celebration of the 25th anniversary of Macau’s return to the motherland.”
On the same topic, the CE reaffirmed the dependence and reliance on Chinese systems and technologies to introduce the e-currency to Macau, admitting, “We rely on the country’s advanced technological strengths to introduce modern, digital economic developments elements into Macau’s monetary system, to meet the requirements of the long-term development of the Macau SAR.”
Briefly after the CE’s speech, AMCM announced further details about the launching of the e-MOP, noting in a press statement that the e-MOP, “is unlike common private cryptocurrencies, in that it is legal tender in digital form.” According to law 10/2023, it has the same legal status as physical banknotes and coins, and equivalent monetary value.
AMCM also noted that the e-MOP “has zero credit risk, and is classified as a higher-level security asset.”
The authority indicates that during the different R&D phases, it will conduct testing in a controlled environment (referred to as a “sandbox” test environment). This testing aims to ensure the security and stability of Macau’s monetary system, “exploring the application scenarios of the e-MOP and assessing the various types of risks following the principle of prudence.”
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