The Gaming Inspection and Coordination Bureau (DICJ) yesterday refuted claims that it had been in discussions with the city’s gaming operators regarding a possible introduction of digital yuan.
The gaming watchdog cited an unnamed source clarifying, “Regarding a media report saying that DICJ had dialogues with gaming concessions on the use of digital yuan within casinos – this is a false report.”
Earlier yesterday, Bloomberg reported that the digital yuan will be introduced to the enclave.
Though no formal plans have been announced, some junkets – businesses that act as middlemen for Chinese high rollers who make up half the city’s gambling revenue – are exiting the industry or shifting resources elsewhere, according to the media outlet.
It stated that a number of casino operators say they have been approached by DICJ over the past few months to discuss the feasibility of using digital yuan to buy casino chips, which are currently denominated in Hong Kong dollars, citing “people familiar with the matter.”
Discussions are allegedly still at an initial stage and there’s been no final decision on whether to proceed, said the people, who asked not to be identified because they’re not authorized to speak publicly about the discussions.
Introducing the digital yuan as a form of currency in Macau’s casinos would mean that high-roller Chinese gamblers no longer need to convert their yuan into Hong Kong dollars to bet big, reducing the junkets’ role as providers of credit.
It would also give Beijing – which bans gambling on the mainland – greater visibility over cash flows through Macau’s casino halls, potentially scaring away high rollers from using the junket system, which has been linked in the past to money laundering.
Junket operators, from small-time outfits to major companies with billions in revenue, are assessing their options on concern the plan will be followed through.
With gaming revenue down at least 90% for six straight months since March due to pandemic-related travel curbs, junkets are already under significant financial stress.
The first cryptocurrency in the world to be issued by a central bank, the digital yuan is now being trialed internally by state-owned banks and companies like Chinese ride-hailing giant Didi Chuxing Inc. and food delivery app Meituan. The People’s Bank of China has not published a timeline or plan for rolling out full public usage.
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