This is the Universal Monetary Unit (UMU), which garnered praise but also much criticism and suspicion.
Recently, at the Spring Meetings of the International Monetary Fund (IMF), The Digital Currency Monetary Authority (DCMA) announced the official launch of an international central bank digital currency (CBDC) which seeks to strengthen the monetary sovereignty of the participating central banks and complies with the recent crypto asset policy recommendations proposed by the IMF.
According to the announcement, the Universal Monetary Unit (UMU), symbolized as the ANSI character, Ü, it is legally a monetary asset, can transact in any legal tender settlement currency, and functions as a CBDC to enforce banking regulations and protect the financial integrity of the international banking system.
Banks can associate SWIFT codes and bank accounts to a UMU digital currency wallet and make SWIFT-like cross-border payments via digital currency lanes, bypassing correspondent banking entirely, at the best exchange rates at wholesale and with instant settlement in real time.
As is often the case with these events, the announcement split the waters in the crypto ecosystem. There are those who see a lot of potential in the idea, but others consider that it will fail, or that it is directly something very suspicious and they do not trust the Digital Currency Monetary Authority (DCMA) or the banks.
It is still early to draw conclusions, but we will see what happens with UMU in the coming months.
Keep reading:
► A study revealed that less than 1% of cryptocurrency holders pay taxes
► El Salvador: they eliminate all taxes on technological innovations and create the Bitcoin Office
► The IMF points again against cryptocurrencies: “They are a threat”
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