UMU, the Central Bank Digital Currency, has been launched. Although the IMF has not officially endorsed UMU, George Walker, a partner at Practus, LLP, noted that the organization had not raised objections to its foreign exchange premium rates or its monetary sovereignty approach.
The International Monetary Fund (IMF) and the Digital Currency Monetary Authority (DCMA) announced the launch of the Universal Monetary Unit (UMU) during the IMF Spring Meetings 2023. Also referred to as Unicoin, the central bank digital currency (CBDC) aims to bolster monetary sovereignty while adhering to the IMF’s recent crypto asset policy recommendations.
Tobias Adrian, Financial Counsellor at the IMF, emphasized the need for a multilateral platform to improve cross-border transactions, stating that such a platform could “transform foreign exchange transactions, risk sharing, and financial contracting.”
Per the DCMA, the Universal Monetary Unit (UMU) seeks to offer a legally recognized money commodity that can be transacted in any legal tender settlement currency. Symbolized by the ANSI character Ü, the UMU operates like a CBDC, enforcing banking regulations and protecting the financial integrity of the international banking system. It also enables banks to securely connect SWIFT Codes and accounts to a digital wallet, facilitating real-time cross-border payments.
According to a recent analysis from the Cato Institute assessment report published on Tuesday, Central Bank Digital Currencies are a foundational threat to America’s economic systems.