Macau Likely to be Test Bed for China’s Digital Yuan: Reuters

Macau is expected to be a testbed for China’s digital yuan, also known as the e-CNY, as casino owners prepare to bid for new licenses in the city for the first time in two decades. - 2022-01-03T110819.320.jpg

Chinese regulators will be looking forward to using the casino licensing opportunity to test the digital yuan in 2022, Reuters reported.

Among many other casino companies in Macau, Sands China and Wynn Macau have shown eagerness to participate in the government’s plan.

The government authorities have also pitched ideas like appointing agents to supervise daily casino operations, according to Reuters.

Last November, when central bank governor Yi Gang suggested China’s newly developed cryptocurrency could be useful for fighting crime such as money-laundering and resolving complex cross-border payments problems, Macau might be one of the options in his pocket list.

In addition, in December, junket operator Suncity’s boss Alvin Chan was implicated in a probe into illegal gaming. Suncity facilitated bets for wealthy VIPs, a market segment worth around $8 billion in gaming revenue the year before COVID-19 struck, Reuters reported.

Using Macau as a testbed for digital payments would benefit Beijing’s desire for greater oversight of cash flows and customers and since the casino hub is situated outside Chinese capital controls, the city is considered an ideal place to test the technology before rolling it out more widely in the mainland.

According to Bernstein analysts estimate, the average high roller lost over $27,000 on each visit to the tables in Macau.

A senior Chinese central bank official said that some 140 million people had registered “wallets” for the new digital yuan as of October and used it for transactions totalling around $9.7 billion, according to a Reuters report from November 2021. 

Although 2022 is likely to be the year for e-CNY, no official launch date for the digital currency has been announced yet.

Since China’s ban of decentralised cryptocurrencies like Bitcoin, the digital yuan is predicted to substitute them.

According to a Blockchain.News report, China implemented its zero-tolerance policy for Bitcoin mining in May 2021, with a series of crackdowns on miners that finally led to the exodus of mining firms from the Asian nation. Beijing’s negative stance about crypto miners is fueled by the supposed environmental impact as the majority of the nation’s power source comes from coal.

Eventually, Chinese miners have found the right footing by relocating to other areas like the United States.

Image source: Shutterstock


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Virtue Gaming launches play-to-earn crypto model to bring online poker to US players

On Friday, Virtue Gaming, a decentralized online poker platform built on the Ethereum (ETH) blockchain, launched the first play-to-earn digital poker casino in the United States.

In the U.S., only six states (Nevada, Delaware, New Jersey, Pennsylvania, West Virginia, and Michigan) have legalized and currently regulate online poker. The country has been slow to act on the subject due to concerns that international poker platforms would take revenue away from domestic, land-based gambling venues. Moreover, even in the said states, poker platforms must obtain licenses from each individual jurisdiction to operate.

As a result, U.S. residents typically cannot access popular online poker platforms, such as PokerStars or 888 Poker, available to players in the rest of the world. To solve this issue, Virtue Gaming proposed a play-to-earn setup where the platform gives users 500 Virtual Player Points, or VPP, worth an approximate $147.37 USD.

Players will receive these for free upon signup. Players who meet the minimum playtime requirements via cash games and tournaments can then cash out their VPP for USDT. U.S. players would then be able to compete with players for the rest of the world, who transfer VPP, ETH, or other cryptos into Virtue Gaming’s locked sidechain smart contracts to stake in the game. To prevent cheating, the platform implements peer-to-peer encrypted shuffling for all decks.

Virtue Poker Casino UI | Source: Virtue Poker

According to legislation, “points or credits that the sponsor of the game or contest provides to participants free of charge and can be used or redeemed only for participation in games or contests offered by the sponsor” fall outside the scope of the legal definition of a bet or wager and could theoretically give the play-to-earn model some regulatory leeway. At time of publication, there are currently over 25,000 players from outside the U.S. on the platform.