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Casinos in Macau Expect Visiting Drop due to Digital Yuan

3 December 2020, 16:46
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The successful phase of replacing Chinese cash with digital yuan can influence the 'Asian Las Vegas' - Macau. Providing the digital and well-controlled yuan can lead to a decline in visiting the gambling destination by Chinese people and significant revenue's drop. Login Casino follows the latest cryptocurrency news and explains the possible conflict between the Chinese digital currency implementation and Macau's incomes.

Casinos in Macau Expect Visiting Drop due to Digital Yuan

Several of Macau's casino operators started to review the possible leaving of the market. The vulnerable news came after China had begun testing the digital yuan. Chinese rulers may force casino owners in the administrative region to replace the Hong Kong dollar (HKD), which is the only legal currency in Macau, with the new digital money.

The problem has a clear link with the recent system. Most of Macau's revenue comes from mainland China. However, those who enter Macau have to exchange their renminbi (RMB) into HKD, which is the automatic operation of increasing anonymity. It means that now the Chinese can safely play in Macau without fearing that governmental structures can come and ask about the unregistered revenues or spendings.

Turning the gambling center to the usage of digital assets will surely eliminate the anonymity of punters and their desire to spend money in Macau as a result. Now the most popular phrase to describe operators' vulnerability is the following: 'If the water is too clean, there'll be no fish.' Casino owners and even independent analysts support such an assumption.

Are there any positive changes that can come to Macau with digital yuan?

At the same time, some experts assume that innovation can positively change the balance of visitors that usually arrive in Macau. The recent portrait of the typical gambler in the regarded administrative region is a rich person that can spend weekends in a luxury zone. If digital yuan is accepted in Macau, more middle-class people can land in the gambling zone as they won't have fear of being pursued by governmental structures concerning money control.

Nevertheless, some of the market leaders are researching the situation and have started to diversify their capital. Some have even begun to invest in other industries like cosmetics or the distribution of luxury goods.

Read moreWhat is the hook of Bitcoin casinos' growing popularity?

Read moreCan blockchain and cryptocurrencies change the situation in the betting industry?

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