The Digital Currency Monetary Authority (DCMA) at the International Monetary Fund 2023 Spring Meetings announced the launch of an international central bank digital currency (CBDC), UMU. This move is aimed at strengthening the monetary sovereignty of central banks therein, in line with the recommendations of the IMF.
Universal Monetary Unit (UMU) also known as Unicoin is a cryptocurrency powered by Artificial intelligence (AI) featuring a Staked Proof of Trust (SPOT) consensus mechanism, and a multi-dimensional DLT (mDLT). UMU adopts a central banking monetary policy framework to ensure “continuous purchasing demand, minimal price volatility, and annual asset pricing targets.”
DCMA introduced the Universal Monetary Unit as Crypto 2.0, claiming it is a new wave of cryptographic technologies for realizing a digital currency public monetary system. Also, DCMA believes it has a widespread adoption framework covering use cases for all constituencies in a global economy.
This implies that Banks can attach SWIFT Codes and bank accounts to a UMU digital currency wallet. Universal Monetary Unit (UMU), symbolized, Ü, functions as a legal money commodity, and like a CBDC to implement banking regulations and ensure the financial integrity of the international banking system is protected.
Transactions can also be initiated in a SWIFT-like cross-border payments manner using the digital currency, real-time and best rates not compromised.
Tobias Adrian, Financial Counsellor at the International Monetary Fund, in an interview stated that “Cross-border payments can be slow, expensive, and risky.” He added that despite the risk presented by cross-order payments, there could exist a multilateral platform that improves cross-border payments while at the same time transforming foreign exchange transactions and more.
Darrell Hubbard, the Executive Director of the DCMA, and the chief architect of UMU affirmed that the project at hand vision is a worldwide solution and a game changer for cross-border payments. George Walker, facilitating meetings between the DMCA and the IMF, mentioned that it is true IMF has not officially endorsed Universal Monetary Unit, however, haven’t objected to “UMU’s FX premium rates and its monetary sovereignty approach.”
The Universal Monetary Unit (UMU) Model Law legislation has been drafted together with several sovereign states. The proposed legislation suggests that UMU be enacted as a complementary money commodity for the store of value rather than a legal tender for domestic and internal trades. This will especially mitigate against potential local currency depreciation, the document stated.
UMU is to be accepted at the equivalent market value for goods and services priced in any national legal tender. UMU wallet can convert any settlement currency amount to the equivalent UMU amount using its built-in exchange rate.
DCMA is one of the top advocates of digital currency and monetary policy innovations for governments and central banks. DCMA members consist of sovereign states, central banks, commercial and retail banks, and other financial institutions.
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