Gov’t unveils digital pataca prototype

The Monetary Authority of Macau (AMCM) unveiled the prototype system for the “Digital Macau Pataca” (e-MOP) yesterday.

Chan Sau San, chairman of the Board of Directors of the AMCM, emphasized that both digital and physical patacas would hold legal tender status, ensuring they cannot be refused in transactions.

The digital currency initiative includes two types of wallets: hard wallets, which will be card-based and compatible with self-service exchange machines for converting cash; and soft wallets, which will offer various functionalities such as adding value, transferring money, and making payments via QR codes.

AMCM plans to initially focus on retail applications while exploring wholesale scenarios as technology advances.

Additionally, there are plans to integrate the digital pataca with digital currencies from mainland China and Hong Kong to facilitate cross-border transactions.

AMCM will implement the process in three stages comprising infrastructure and core system development, an internal closed trial operation, and comprehensive public testing. The digital Macau patacas will only be officially launched once the infrastructure is established and thoroughly tested to ensure that risks are manageable.

Yesterday, the bureau launched the digital pataca’s whitepaper, the first document to explain the project’s content, research, and development process. It predominantly justifies the need for the central bank’s digital currency, as well as the goals and potential benefits of digital Macau patacas, their positioning, design principles, significance to stakeholders, and development blueprint. LV