During the International Monetary Fund (IMF) Spring Meetings 2023, the Digital Currency Monetary Authority (DCMA) made an announcement regarding the launch of an international central bank digital currency (CBDC). The new currency will aim to strengthen the monetary sovereignty of participating central banks and comply with the recent crypto assets policy recommendations proposed by the IMF.
The Universal Monetary Unit (UMU) will function as a CBDC to enforce banking regulations and protect the financial integrity of the international banking system. Banks will be able to attach SWIFT Codes and bank accounts to a UMU digital currency wallet, allowing them to transact SWIFT-like cross-border payments over digital currency rails. This process bypasses the correspondent banking system and occurs at best-priced wholesale FX rates, with instantaneous real-time settlement.
The DCMA's Executive Director, Darrell Hubbard, claims that UMU will not disrupt the international monetary system but strengthen it. The currency helps the IMF achieve its mandate to provide economic and financial stability to its member states, while also mitigating against seasonal and systemic local currency depreciation. While the IMF has not officially endorsed UMU, it has yet to object to UMU's FX premium rates and monetary sovereignty approach, according to George Walker, a Partner at Practus, LLP, specializing in international law.
The Universal Monetary Unit Model Law legislation has been drafted in collaboration with several sovereign states. The proposed legislation suggests UMU should not be enacted as legal tender for negotiating domestic prices or international trade agreements. Instead, it should be enacted as a complementary money commodity for the store of value and tendered as a payment currency at the time of settlement. Merchants and trading partners could accept UMU for the equivalent market value for their goods and services priced in any national legal tender.
About the Digital Currency Monetary Authority (DCMA) –
The DCMA is a world leader in the advocacy of digital currency and monetary policy innovations for governments and central banks. Membership within the DCMA consists of sovereign states, central banks, commercial and retail banks, and other financial institutions.
https://dcma.io
About Universal Monetary Unit (UMU) –
Universal Monetary Unit (UMU), also known as Unicoin, is an innovation in store of value cryptography powered by artificial intelligence (AI). It adopts a central banking monetary policy framework to ensure it has continuous purchasing demand, minimal price volatility, and annual asset pricing targets.
A copy of the UMU Whitepaper is available on its website.
https://umu.cash
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