THE IMF HAS JUST UNVEILED A NEW GLOBAL CURRENCY

THE IMF HAS JUST UNVEILED A NEW GLOBAL CURRENCY KNOWN AS THE “UNIVERSAL MONETARY UNIT” THAT IS SUPPOSED TO REVOLUTIONIZE THE WORLD ECONOMY​

Today, at the International Monetary Fund (IMF) Spring Meetings 2023, the Digital Currency Monetary Authority (DCMA) announced their official launch of an international central bank digital currency (CBDC) that strengthens the monetary sovereignty of participating central banks and complies with the recent crypto assets policy recommendations proposed by the IMF.

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The Digital Currency Monetary Authority (DCMA) Unveils its Whitepaper for an International Central Bank Digital Currency (CBDC)​

WASHINGTON, April 20, 2023 /PRNewswire/ -- Last week, at the International Monetary Fund (IMF) Spring Meetings 2023, the Digital Currency Monetary Authority (DCMA) announced their official launch of Universal Monetary Unit (UMU), Unicoin, an international central bank digital currency (CBDC) that can transact SWIFT-like cross-border payments over digital currency rails completely bypassing the correspondent banking system at best-priced wholesale FX rates and with instantaneous real-time settlement.

The response to the announcement was tremendous. Emerging market participants expressed hope Unicoin would be a solution for decolonizing the international monetary system, whereas others expressed fears Unicoin could be a global centralized surveillance tool for governments.

According to Darrell Hubbard, the Executive Director of the DCMA, "Central banks do not fully understand the driving forces behind cryptocurrency adoption and have missed the mark on their research, development, and launch of CBDC projects. While banks are focused on monetary sovereignty and financial integrity, crypto investors are keenly interested in making money in a more fair and open financial monetary system."

CBDCs are simply digitized legal tender. If a country's legal tender is systemically losing in value to the U.S. Dollar, so will its CBDC. Hence, crypto investors view CBDCs more like a souvenir and not an innovation that is going to make their life any better.

So, how is Unicoin any different?

CBDCs are legal tender regulated by central banks whereas Universal Monetary Unit is a money commodity regulated by the U.S. Commodities Futures and Trade Commission (CFTC).

Darrell explains "Unicoin offers the best of both worlds between a cryptocurrency and a CBDC. As a crypto asset, 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 international monetary system has some inherent encumbrances that have caused many countries to adopt de-dollarization monetary policies. Many of these de-dollarization projects are seeking digital currency solutions as an alternative to the current international monetary system.

This week the DCMA has published the Universal Monetary Unit Whitepaper titled "A Best-in-Class Money Commodity for Strengthening Monetary Sovereignty with a Digital Economic Union."

Universal Monetary Unit introduces a new wave of cryptography reimagined from the ground up for the banking industry. The Unicoin Whitepaper unveils several innovations designed to make banking faster and safer while strengthening and not disrupting the international monetary system.

Unicoin is built on open standards and is deployed like a money operating system. Banks and Fintech companies can easily integrate with existing apps with a UMU store of value wallet to conduct real-time cost-efficient digital banking, digital trade, and digital payments worldwide.

In this Whitepaper, the DCMA responds to the IMF's recently published report on the potential risks crypto assets pose to the banking industry. The DCMA refutes every single potential risk identified by the IMF and explains how Unicoin strengthens and not weakens the international monetary system.

The Unicoin Whitepaper can be downloaded at – https://umu.cash/whitepaper

About the Digital Currency Monetary Authority (DCMA) –

The DCMA is a world leader in the advocacy of digital currency and monetary policy innovations for governments and central banks. Membership within the DCMA consists of sovereign states, central banks, commercial and retail banks, and other financial institutions.

Digital Currency Monetary Authority (DCMA)

The DCMA is a world leader in the advocacy of digital currency innovations for monetary authorities.

dcma.io

About Universal Monetary Unit (UMU) –

Universal Monetary Unit (UMU), symbolized as ANSI Character, Ü, is legally a money commodity, can transact in any legal tender settlement currency, and functions like a CBDC to enforce banking regulations and to protect the financial integrity of the international banking system.

Universal Monetary Unit

Universal Monetary Unit (UMU) for digital banking, digital payments, and digital trade. We guarantee banks the best money rates.

umu.cash

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In this section, we identify the Top 10 features we consider as “best in class” for a CBDC design. The DCMA presented these features to central banks around the world at a public lecture on CBDC hosted by the University of Maryland.
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A Trusted Consensus Protocol – Staked Proof of Trust (SPOT) Protocol​

Unlike public blockchains deployed with trustless consensus protocols, central banks and monetary authorities are trusted entities for providing a safe and secure monetary system.

Trustless consensus protocols are usually complex and requires majority consensus on a transaction before recording in the general ledger.

Unicoin optimizes a high-performance 2-tiered consensus protocol for trusted monetary authorities.

The first tier is a clustered group of trusted monetary authority nodes, called meganodes, which provides instantaneous validation and processing of network transactions.

The second tier is a non-clustered group of validating nodes, called mesonodes, which reviews and verifies the meganodes.

Any mesonode can stake and reject a pending transaction from the mesonodes. If the majority accepts the transaction of the meganodes, the challenging mesonodes will lose their stake.

Like Proof of Stake (PoS), all mesonodes must commit a financial stake to validate transactions and earn Unicoins for their validation services.

However, because meganodes are trusted entities, the Staked Proof of Trust (SPOT) Protocol implements a “no response” response acknowledgement system.

In computing, a timeout or no-response within a specified timeslot is considered a response. Contrary to trustless consensus where each node broadcasts consensus messages for each block, in the SPOT protocol, mesonodes only send reject messages when challenging a transaction.

If a mesonode does not respond to a pending meganode transaction within a specified timeslot, their “no response” is considered an affirmative response. Once majority consensus is achieved the transaction is updated from pending to the either accepted or rejected status.

The 2-tiered SPOT protocol has unlimited scaling potential due to the adoption of “no response” acknowledgements and is not hindered by network congestion and latency issues.
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Electronic Cash is transacted through the regulated banking system, requiring KYC, AML, and other requirements. Physical Cash can transact outside the banking system privately between two parties.

Many citizens fear with the advent of retail CBDC, governments may take away private physical cash money and incorporate surveillance capabilities in retail CBDC.

The same as customers can deposit and withdraw cash from their bank account, the same model should apply to Retail CBDC (physical cash) and Wholesale CBDC (electronic cash). On the Unicoin Network, users can attach their mobile wallet to their bank wallet and transfer money between them.

Figure 5 below shows how UMU uses QR Code technology to link bank and mobile wallets together.

Mobile wallet transactions are processed point-to-point and are not recorded on the banking network. Point-to-point digital cash transactions supports financial inclusion and the unbanked as WiFi and a smart phone are not needed.
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The DCMA has ensured our digital currency technology does not disrupt central banking and the foundational workings of the international monetary system. However, retail and commercial banking may be totally disrupted while maintaining the integrity of the international monetary system.
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Sanctions are another good use case for global localization. One central bank may decide to sanction a person, entity, or another jurisdiction, whereas another sovereign state may not elect to do so.

The DCMA does not impose any centralized regulatory rules. It is the responsibility of each central bank and/or commercial bank on the Unicoin Network to configure their regulatory compliance rules.

For example, if one central bank sanctions another country, entity, or person that sanctions would be applicable at the country level for any money transfers sent or received from within its jurisdiction.

However, because each country has their independent monetary sovereignty, it is up to other countries to decide if they choose to adopt the same sanctions.

Often allies of a country may adopt the same or similar sanctions for their economy. If so, each ally would have to configure the sanction independently. Ensuring each country maintains their monetary sovereignty, the DCMA does not implement any centralized sanctions or compliance rules.

This global decentralization approach is applicable to all money servicing and compliance commands on the Unicoin Network.
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