The International Monetary Fund’s Digital Currency Monetary Authority (DCMA) recently announced the forthcoming launch of the Unicion Universal Currency Unit (UMU).
A digital currency that will be accepted as legal tender for cross-border settlements.
UMU will be recognized by all settlement participants as a monetary commodity that complies with banking regulations and safeguards the financial integrity of the global banking system.
It will operate as a central bank digital currency (CBDC) in a digital format.
When making bank transfers in UMU, settlement participants will be able to link their accounts and SWIFT codes to the Unicion digital wallet in real time.
The CEO of DCMA, Darrell Hubbard, emphasized that UMU can be configured to operate according to the central bank regulations of each participating jurisdiction using a globally localized public monetary architecture.
In a related development, the IMF had previously warned Islamic countries about the potential challenges they may face when launching CBDCs in their local banking systems.