The digital version of Macao’s currency, the pataca, is nearing completion, with Tai Kin Ip, the secretary of economy and finance, revealing that sandbox testing of the system would begin after its scheduled finalisation by the end of this year.
At a gala covered by local media yesterday, Tai said the development of a digital pataca (eMOP) system not only boosts the digitisation of the SAR’s finance sector, but also aligns with China’s policy on the development of the digital economy.
Tai’s remarks reiterate the ones made by the Monetary Authority of Macau on 30 October. In a response to a query from lawmaker, Song Pek Kei, the department stated that the development of eMOP followed the plans of the Digital Pataca White Paper, which was published last December. That document outlined the principles, goals and guidelines for the development of the virtual currency.
The Monetary Authority also explained the rationale behind eMOP, one of which included “meet[ing] the public’s demand for convenient, secure and inclusive payment solutions.”
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On the sandbox testing due to take place, the department said it would adopt a whitelisting approach in which pre-approved users are allowed to make use of the system.
The organisation noted that it would gain practical experience under situations where the risk could be managed, and would use the knowledge acquired as “important reference” for optimising and improving the system.
A concrete timetable for the release of the eMOP system has yet to be announced, although the government is looking to have the currency used within the general economy, as well as financial institutions.
According to the Monetary Authority of Macau, the digital pataca will hold the same legal status as its physical counterpart.
Digital payment has grown increasingly popular in Macao, with the city reporting 350 million mobile transactions last year, up by 17.9 percent year-on-year.
