Macau saw revenue plummet by $27bn in 2020 as pandemic travel curbs kept lucrative Chinese gamblers away. While visitors are slowly returning, a potentially bigger threat is unnerving operators in the world’s biggest casino hub: the prospect China’s central bank-backed cryptocurrency, the digital yuan, will be introduced to the enclave.
Discussions are 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 authorised to speak publicly about the discussions. 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.
First, it would cut off the shadow banking and money laundering activity that threatens the government’s control of its currency, contributing to outflows. Authorities in Macau have cracked down on such activity in recent years, installing facial recognition technology at Macau’s ATMs and banning proxy betting and underground banks.
Some analysts say the potential e-RMB launch could ultimately be a good thing for Macau, which is six times the size of Las Vegas, but where growth had been slowing even before the pandemic due to the tightening of rules to prevent money-laundering, as well as rising competition from gaming locations online and in Southeast Asia.