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Unicoin: The Global Legal Tender Settlement CBDC
Last week’s International Monetary Fund (IMF) Spring Meetings 2023 saw the launch of an international central bank digital currency (CBDC) by the Digital Currency Monetary Authority (DCMA) known as the Universal Monetary Unit (UMU). UMU, also known as Unicoin, is a legal money commodity that can transact in any legal tender settlement currency and functions like a CBDC to enforce banking regulations and protect the financial integrity of the international banking system. In this article, we will take a closer look at this new currency and its potential impact on the global financial system.
The Basics of Unicoin
According to the press release, UMU adopts a central banking monetary policy framework to ensure it has continuous purchasing demand, minimal price volatility, and annual asset pricing targets. The currency is symbolized by the ANSI Character Ü, and banks will be able to utilize it by attaching SWIFT Codes and bank accounts to a UMU digital currency wallet. This will enable 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.
