Run digital of the yuan is threatening the gambling industry of Macau

The launch of the digital yuan threatens Macau's gambling industry, Bloomberg writes.

Although no official plans have been announced yet, intermediaries who help wealthy Chinese residents visit such establishments are beginning to wind down their businesses or move to other jurisdictions. They say the emergence of a government-tracked currency is tantamount to a death sentence for an industry that has already been hit by the coronavirus pandemic and tougher regulations in recent years.

Several casino operators reported that they had been contacted by the Macau Gambling Inspectorate in recent months to discuss the possibility of selling chips for the digital yuan. The regulator claims that this information is not true.

Although the information remains unconfirmed, it has already stirred up intermediaries who provide private planes and arrange accommodation, but most importantly-supply players with chips. It is estimated that wealthy Chinese residents account for half of Macau's revenue. Shares of related companies lost up to 3% on Wednesday.

Setting up payments using the digital yuan in Macau will mean that Chinese players will no longer be able to convert yuan to Hong Kong dollars to participate in gambling. Beijing, on the other hand, will be able to monitor all cash flows.

"If the water is too clean, there will be no fish left in it. Big players will leave if casinos become transparent, " said one of the representatives of the intermediary business.