Macau will launch a trial operation of its digital currency, dubbed “e-MOP,” for select users and entities by the end of 2025, following a public showcase of the prototype by the end of this year, said the Bank of China Macau Branch (BOC Macau), the operational entity for the initial phase.
The Monetary Authority of Macao (AMCM) has disclosed the e-MOP prototype “with basic functions” will be publicly demonstrated by year’s end.
Jia Tianbing, general manager of BOC Macau, emphasized the bank’s full commitment to developing the prototype system to align with the authorities’ plan for the public demonstration.
AMCM president Chan Sau San said the central bank digital currency will undergo testing and deployment across three phases before an official launch, with BOC Macau as the initial operator.
Jia emphasized the importance of developing the local CBDC noting, “digital finance represents a global trend” as mainland China and Hong Kong also work on their own digital currencies, as cited in local media reports.
“The rollout of e-MOP can seamlessly integrate Macau into the economic and social development of the Guangdong-Hong Kong-Macao Greater Bay Area without impediments,” he said.
Hong Kong initiated its e-HKD project in June 2021 to assess the viability of introducing an e-HKD for individual and corporate use.
“The evolution of the digital economy is the global trajectory of development,” Jia added.
China has been trialing digital RMB since 2020, with features dedicated to a digital RMB wallet and mobile applications.
The executive stressed e-MOP’s key difference, noting that, “Children under 12 cannot open bank accounts, the elderly are less acquainted with mobile payments, and tourists lack local bank accounts. These groups encounter distinct obstacles hindering their use of mobile payments, impacting daily routines and experiences,” he said.
“In contrast, e-MOP, as legal tender, is tailored to cater to citizens of all age groups” and “will especially benefit the young, elderly and tourists, facilitating seamless use of e-MOP for day-to-day transactions and payments.”
The Legal System for Currency Issuance was revised last year to affirm CBDC as legal tender.
Chan disclosed plans for two types of e-MOP wallets – a dedicated mobile app wallet and a hard wallet like smart devices and stored value cards.
As one of two banknote issuing banks in Macau with parent Bank of China’s involvement in China’s digital RMB, the BOC Macau is well-positioned to aid in e-MOP research and development, said Jia.
He cited enabling over 40,000 merchants to accept digital and physical digital RMB wallets during the 2022 Beijing Winter Olympics, indicating a potentially similar scenario could unfold in Macau’s tourism-driven economy and future.
The launch of the “Digital Macau Dollar,” as denoted by Jia, resonates with Macau’s strategic importance as the ‘World Centre of Tourism and Leisure,’ marking a significant step towards financial diversification and technological progress.
Coinciding with the 25th anniversary of Macau’s return to the motherland in 2024, the launch of the e-MOP is considered a manifestation of financial assistance to Macau’s diversification.
Mobile payment transactions in Macau surged to 300 million in 2023, with a transaction value of MOP28.1 billion dollars, marking a remarkable increase compared to pre-COVID levels in 2019.
Following the start of the trial operation, Jia said, “We will progressively broaden the scope of the e-MOP application and enhance the system’s functionality, thereby supporting local economic development and showcasing tangible financial service accomplishments to the public.”
He said the e-MOP is not associated with bank accounts, which will expand the scenarios and groups eligible for mobile payments, making it more convenient and popular. Victoria Chan
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