Macau’s digital currency system e-MOP to complete this year: AMCM

 nov25

The development of Macau’s digital currency system, e-MOP, is expected to be completed by the end of this year, with sandbox testing across selected scenarios to follow in the next phase, the city’s de-facto central bank said.

The Monetary Authority of Macau (AMCM) made the remarks in a written reply this week to legislator Song Pek Kei, who inquired about the progress of the e-MOP initiative, first unveiled last year.

“To continuously enhance the digitalisation of Macau’s financial system and meet the public’s demand for convenient, secure and inclusive payment solutions, we are steadily advancing the development of the digital pataca system in accordance with the roadmap set out in the Digital Pataca White Paper of the Macau SAR,” the AMCM said in the response, dated 30 October.

The Macau government introduced the prototype of e-MOP last December alongside the publication of a white paper outlining its purpose, design, positioning and technical features.

The digital pataca is classified as a central bank digital currency (CBDC), a form of money issued and guaranteed by a central bank. It will serve as legal tender in Macau, equivalent to physical cash, and will carry no credit risk.

The project is being led by the AMCM with support from the People’s Bank of China. The Bank of China Macau Branch—one of the city’s two note-issuing banks—has been selected as the operational entity during the pilot phase.

Whitelist approach

“In the next phase, sandbox testing will be carried out across selected application scenarios using a whitelist approach, allowing us to gain practical experience under controllable risk conditions,” the AMCM said in the reply.

A whitelist approach is the inverse of a blacklist model: only pre-approved entities or actions are permitted, while all others are automatically restricted.

“The findings [from sandbox testing] will serve as a key reference for future system optimisation and the development of supporting infrastructure,” the reply added.

However, the regulator did not provide a timeline for when the digital pataca will be made available for widespread public use.

According to the government’s outlined plan, the e-MOP will serve two primary functions: retail and wholesale. The retail application will enable everyday transactions by residents, tourists, businesses and government departments in a variety of commercial settings. The wholesale application will facilitate transactions, settlements and fund transfers between financial institutions.

For retail users, the AMCM envisions two types of wallets: soft wallets, accessed via mobile applications, and hard wallets, integrated into smart devices.

The e-MOP initiative comes as authorities across Greater China accelerate their digital currency efforts. Mainland China began piloting the digital yuan in 2020, launching dedicated wallets and apps. In June 2021, Hong Kong launched its digital Hong Kong dollar (e-HKD) project to explore the feasibility of issuing a local CBDC.

Last month, Hong Kong officials said the development phase of the e-HKD had concluded and that future efforts would focus on wholesale applications for financial institutions. Preparatory work for potential use by individuals and corporations is expected to be completed by the first half of 2026.

https://www.macaubusiness.com/macaus-digital-currency-system-e-mop-to-complete-this-year-amcm/

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