Macau plans to launch CBDC and link it to digital yuan, e-HKD
Macau intends to launch a retail central bank digital currency (CBDC) and connect it to mainland China‘s digital yuan and Hong Kong’s e-HKD. The Macau government is working with the Digital Currency Research Institute of the People‘s Bank of China (PBoC) to advance the e-pataca, local outlets report. It intends to launch a prototype that features basic functions during the celebration of the 25th anniversary of Macau’s handover, set for December 20. Macau is a Special Administrative Region (SAR) of China. Similar to Hong Kong, it operates under the ‘one country, two systems’ principle, and as such, it has its own economic and legal system independent of mainland China. This includes having its own currency, the pataca, although the Hong Kong dollar (HKD) is also widely used. Uniquely, the pataca isnt issued by a central bank but by two commercial banks—the Bank of China (BOC) and Banco Nacional Ultramarino (BNU). According to local reports, the BOCs Macau branch will oversee the initial stage of the e-pataca, developing, issuing, and redeeming the CBDC. It will also operate the customer portal and digital wallets. BNU is expected to join in at a later stage. Announcing the project, Lei Wai Nong, the Secretary for Economy and Finance,
