Special Report – Pataca,170 years on – Quo vadis?

By
João Paulo Meneses

Macau Business | July 2023 | Special Report | Pataca, 170 years on – Quo vadis?

1553 – 1853 – 2013 -2053

Many historians recognize the year 1553 as the year of the establishment of permanent trading depots by the Portuguese in Macau. Over the course of the first 300 years, business transactions were conducted through barter or the use of silver as a currency. It wasn’t until 1853 that an official law was enacted, formally introducing the pataca as the currency of Macau. Remarkably, after 170 years, the pataca remains the city’s official currency.

In this special report, we delve into the historical context and shed light on the growing threats faced by the pataca, particularly due to the rise of digital payments and cryptocurrencies. A notable example of this is the Chinese project involving the central bank-backed digital yuan.

While the pataca may not be the most widely used currency globally in Macau, where the Hong Kong Dollar takes the lead, it holds a special place among residents who have developed a close bond and fondness for it. Experts warn that its disappearance would have profound consequences on the level of identity.

Why is the pataca under pressure? There are factions defending the pataca, primarily led by the AMCM, and opposing forces that aim to diminish its influence, such as digital currencies and the proposal to introduce the renminbi into the casino business.

After 170 years, the pataca still perseveres and resists the challenges it faces. The question remains: will it endure for another 30 years to celebrate its 200th anniversary? (Considering that 2053 comes after 2049…)

Co-ordinated by João Paulo Meneses

[email protected]

MOP resists HKD profusion

Gaming, in particular, works with HKD, increasing the risk of currency substitution over the pataca

Bogus banknotes

Legislators are discussing the best way to tackle the counterfeit currency problem

Hengqin: a win-win option, but when?

For at least eight years, there has been talk of the possibility of the pataca being accepted in Hengqin. The advantages for Macau are obvious, but there are obstacles. It remains to be seen whether the solution that will be found is comprehensive or intended solely for micropayments.

Four key dates in History

In the past 170 years, the pataca has experienced numerous ups and downs, including several crises. Let’s recall the most significant dates.

Who wants to buy a pataca for MOP3,500?

Pataca coins and banknotes are in great demand among collectors, especially Asians. a MOP100 bill from 1906 could potentially be traded for over MOP800,000.

A Question of Identity: MOP squeezed between HKD and CNY

The pataca is an icon of the city’s identity and autonomy, but it is facing increasing pressure from the neighbouring currencies in Hong Kong and the mainland, as well as from the ever-growing digital payment tools

The digital currency challenge

Will a stronger digital currency lead to a weaker pataca?

Digital yuan at casinos?

There is no shortage of arguments stressing the pros and cons that will result from the adoption of the digital renminbi in casinos.

New acts, 28 years on

Currency in digital format will finally be enshrined in law, alongside other updates aimed at preparing Macau to embrace ‘Modern Finance’

Monetary Authority explains

Macau Business addressed a series of questions to the Monetary Authority of Macau (ACMC) on topics that require clarification and generate interest on the part of public opinion. These are the answers to three pivotal matters