Macao is one step closer to issuing a digital version of its currency, the pataca, after the government announced yesterday that it had completed the development of a prototype. The digital version is being referred to as the e-MOP, after the standard “MOP” code used to designate the Macao pataca in banking transactions.
Chan Sau San, the head of the Monetary Authority of Macao, said the new virtual currency will possess the same legal tender status as its physical counterparts, meaning that all local businesses are obliged to accept it as payment. His remarks were cited by multiple media outlets.
As for the forms that the digital patacas will take, the government intends to introduce two types of wallets – a “hard” wallet and a “soft” wallet.
The former will take the form of a physical card, which residents and visitors can top up using self-service machines that will convert their hard cash into digital form based on the real-time exchange rate.
The soft wallet will meanwhile utilise a mobile app that enables users to perform tasks such as recharging, transferring money and conducting transactions via a QR code.
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In his address during a ceremony to showcase the new prototype system, the secretary for economy and finance, Lei Wai Nong, said the new venture had “far-reaching significance to Macao’s economy, finance and rapid social development.”
The government intends to shortly begin testing the prototype system in a sandbox and public environment. On when the digital currency can expect to be fully launched, Chan said that testing would be performed in three phases and that the e-MOP would only be released when fully secure.
The Monetary Authority also pointed out that e-MOP is not intended to replace other existing electronic payment methods but function alongside them. The currency may also benefit from crossborder functionality, as Chan noted that there were plans to link the digital pataca with its counterparts in the mainland and Hong Kong.
Plans to introduce a digital pataca system can be traced back to 2022, when the government drew up a bill that gave the future e-MOP the same legal status as hard currency. In September of this year, the government announced it would unveil a prototype by the year’s end.
In recent years, digital payment methods have seen a surge in popularity, with official data showing that 88.1 million mobile transactions were conducted in Macao in the third quarter of 2024, a jump of almost 3 percent in comparison to the second quarter.
