The Macau Monetary Authority (AMCM), with the support of the People’s Bank of China’s (PBOC) digital currency research institute, is advancing the research and development of the digital pataca issuance, and it is planning to conduct a public demonstration of the e-Mop’s prototype system by the end of the year, Chief Executive Ho Iat Seng said yesterday at the opening ceremony of the 2nd China-Portuguese-speaking Countries Central Banks and Financiers Conference in Cotai.
E-Mop is another name for the digital pataca.
In June last year, the Legislative Assembly (AL) passed a government-initiated bill enabling the issuance of digital currency. Under the new law, Macau’s legal tender will encompass digital currency alongside traditional forms like banknotes and coins, granting digital currency the same legal status as physical money.
The patacas is Macau’s sole legal tender.
Ho noted that following the global trend of central bank digital currencies, Macau will leverage the nation’s cutting-edge technological capabilities to introduce advanced and technological elements suitable for digital economic development into Macau’s currency system, in line with the long-term development needs of the Macau Special Administrative Region (MSAR).
As per a statement released by AMCM yesterday, the government will establish infrastructure conducive to supporting digital financial innovation, aiming to inject new vitality into Macau as a smart city and economically diverse region.
The statement added that AMCM would outline plans to draft laws and regulations tailored to Macau’s market dynamics and to prepare sufficiently for the official launch of the digital pataca. The statement also pointed out that “sandbox testing”* of the prototype system would be conducted to explore usage scenarios for the e-Mop.
During the conference, Ho also noted that the MSAR government has been dedicated to building the platform for China-Portuguese-speaking countries business cooperation and services, fully showcasing Macau’s platform role and international influence. “In 2023, the trade volume between China and Portuguese-speaking countries exceeded US$220 billion, with the scale of cooperation continuously expanding, providing broad development opportunities for Macau’s platform to serve China and the Portuguese-speaking countries,” Ho said.
The conference, hosted by AMCM, Macau’s quasi-central bank, was held at the Galaxy International Convention Centre in Cotai. It was also attended by PBOC Governor Pan Gongsheng and nine central bank representatives from Portuguese-speaking countries, namely Angola, Brazil, Cabo Verde, Equatorial Guinea, Guinea-Bissau, Mozambique, Portugal, São Tomé and Príncipe, and Timor-Leste.
In his speech, Pan mentioned that nowadays the yuan ranks fourth in international payments and second in cross-border trade financing in the world. He expressed his hope to further strengthen cooperation in operational areas with Portuguese-speaking countries and to support eligible Portuguese-speaking banking institutions joining the yuan cross-border payment system.
Pan also noted that digital payment networks have been rapidly developing in China, significantly improving the efficiency and inclusiveness of payments. “This development has led to a substantial reduction in transaction costs. The People’s Bank of China [the nation’s central bank] is willing to collaborate with the Monetary Authority of Macau to provide technical support and assistance in advancing the nation’s financial technology development,” Pan underlined.
Around 300 senior executives from financial and professional institutions attended the conference. The AMCM signed agreements with several Portuguese-speaking countries’ central banks during the conference to deepen cooperation.
*Sandbox testing refers to a controlled environment where software applications can be tested in isolation from the rest of the system. – Source: Poe
Chief Executive Ho Iat Seng delivers a speech yesterday at the opening ceremony of the 2nd China-Portuguese-speaking Countries Central Banks and Financiers Conference at the Galaxy International Convention Centre in Cotai.
PBOC Governor Pan Gongsheng delivers a speech yesterday at the opening ceremony of the 2nd China-Portuguese-speaking Countries Central Banks and Financiers Conference. – Photos: William Chan
