Unicoin: The Revolutionary New Legal Tender CBDC Unveiled at the IMF Spring Meetings 2023

The Digital Currency Monetary Authority (DCMA) made an exciting announcement during the International Monetary Fund (IMF) Spring Meetings 2023: the launch of the Universal Monetary Unit (UMU), a global legal tender settlement CBDC that is symbolized by the ANSI Character ü and affectionately known as Unicoin.

This groundbreaking currency transacts in any legal tender settlement currency and functions like a CBDC, enforcing banking regulations and safeguarding the financial integrity of the international banking system. It adopts a central banking monetary policy framework to ensure continuous purchasing demand, minimal price volatility, and annual asset pricing targets.

But that's not all: banks can utilize Unicoin by attaching SWIFT Codes and bank accounts to a UMU digital currency wallet. This allows them to conduct SWIFT-like cross-border payments entirely over digital currency rails, accessing the best-priced wholesale FX rates and achieving instantaneous, real-time settlement while bypassing the correspondent banking system.

Unicoin has premium exchange rates built into its wallet and can convert any settlement currency amount to the equivalent UMU amount, making it easier for merchants and trading partners to accept it as a form of payment for their goods and services priced in any national legal tender.

UMU is specifically designed to support central banking and regulated financial institutions. It utilizes a staked proof of trust (SPOT) consensus protocol, along with a “multi-dimensional DLT (mDLT) capable of supporting any asset or liability ledger enabling full-service digital banking and international trade payments.”

Through the adoption of a global localization public monetary system architecture, UMU can be configured to operate according to the central banking regulations of each participating jurisdiction. Unicoin strengthens the international monetary system by helping the IMF achieve its stated mandate to provide economic and financial stability to its member states, and it mitigates against seasonal and systemic local currency depreciation.

Unicoin is not attempting to disrupt the international monetary system; in fact, it is strengthening it by introducing a new wave of cryptographic technologies for realizing a digital currency public monetary system with a widespread adoption framework encompassing use cases for all constituencies in a global economy.

According to George Walker, a Partner at Practus, LLP, who facilitated weekly meetings between the DMCA and the IMF where the whitepaper for the project was discussed, while the IMF has not made any official endorsements of UMU, the organization “has yet to state any objections to UMU’s FX premier rates and its monetary sovereignty approach.”

Unicoin is set to be a game-changer in how cross-border payments are transacted, transforming foreign exchange transactions, risk-sharing, and more generally, financial contracting. Stay tuned for more updates on the future of Unicoin and its impact on the global economy.

Source: https://www.kitco.com/news/2023-04-10/IMF-unveils-Unicoin-A-global-legal-tender-settlement-CBDC.html