The Digital Currency Monetary Authority (DCMA) has announced the launch of its Universal Monetary Unit (UMU) dubbed unicoin. Unicoin is an international central bank digital currency (CBDC) that facilitates cross-border payments via digital currency rails.
DCMA unveils Unicoin
The Digital Currency Monetary Group (DCMA), a world leader in the advocacy of digital currency and monetary policy innovations for central banks and monetary authorities, has launched central bank digital currency dubbed unicoin.
Per an announcement by the team, unicoin, which was officially unveiled during the International Monetary Fund (IMF) spring meetings 2023 event, is designed to serve as a universal monetary unit (UMU) and international CBDC that can facilitate SWIFT-like cross-border payments through digital currency rails.
The team claims unicoin enables users to enjoy the best-priced foreign exchange rates and instant real-time settlements that do not pass through the banking system.
Better than a CBDC?
While a good number of central banks worldwide are now at different stages of their CBDC development, observers have raised concerns over the inherent risks of these digital currencies, including privacy issues.
However, Darrel Hubbard, the executive director of the DCMA has made it clear that unicoin is different from regular CBDCs, in that the former is a money commodity regulated by the U.S. CFTC, while the latter is controlled by central banks.
“Unicoin offers the best worlds between a cryptocurrency and a CBDC. As a cryptoasset, Unicoin adopts monetary policies to ensure it sustains its store of value stronger than any fiat currency while simultaneously complying with banking regulations to strengthen monetary sovereignty,”
The team claims unicoin’s UMU system ushers in a new wave of cryptography built from the ground up for the banking industry, to enable faster and safer transactions without disrupting the monetary system. The DCMA has released a whitepaper for its new monetary.