Finance experts from Bernstein have analyzed how going cashless might affect Macau’s gambling economy. The analysts believe that it will revitalize the sector – something it desperately needs right now.
Bernstein Spoke about Macau and Digital RMB
Bernstein finance specialists have commented on the prospects of introducing China’s virtual currency, the digital renminbi (digital RMB) into casinos in Macau. According to the experts, this may provide Macau’s gaming industry with a much-needed boost. They argued that the transparency of the digital RMB will allow China to ease its capital control of Macau.
The digital RMB system went live in 2020 and has since been gaining traction. Multiple cities in China now use the digital currency, which has allowed multiple shops to introduce cashless payments. Cashless gaming, on the other hand, is one of the hot topics of the global gambling industry as it allows players to enjoy betting without waiting to withdraw cash.
Bernstein analysts are convinced that the digital RMB has the potential to become a core pillar of Macau’s gambling market. Thanks to cashless gaming, players will be able to avoid the hassle of depositing and withdrawing funds and play without any transaction fees. Visitors from mainland China will be able to avoid currency conversions and the associated costs.
There Are Many Potential Benefits
Bernstein experts also pointed out that digital RMB will help to prevent certain crimes and fraud. The greater transparency associated with a universal digital currency will make gambling safer and will prevent money-laundering attempts. This, in turn, will lead to an eventual relaxation of the cross-border control between mainland China and Macau, analysts believe.
The introduction of digital RMB will greatly benefit the sector in more than one way. Bernstein experts said that the hypothetical lifting of certain restrictions will encourage people to play more freely and allow them to enjoy the mass play more.
However, transparency might be a double-edged blade. Some Chinese bettors will likely avoid spending a lot on gambling when they know that their funds are transparent. Despite that, Bernstein is sure that the positives of going cashless far outweigh the negatives. Right now, Macau’s gambling industry suffers because of China’s anti-COVID measures and could do with a boost.
Moreover, China’s stance on gambling has also been detrimental to the special administrative region. According to Credit Suisse, visa restrictions are one of the factors that undermine Macau’s GGR.
Meanwhile, discussions about the future of the Macau gambling industry continue.