As the popularity of Bitcoin and other cryptocurrencies continues to surge, so do concerns about their impact on the traditional banking and financial systems. Many experts worry that the rise of crypto assets could pose significant risks to the stability of the international monetary system and the financial sovereignty of nations.
In response to these concerns, the Digital Currency Monetary Authority (DCMA) has recently launched Universal Monetary Unit (UMU), Unicoin, a ‘hybrid of cryptocurrency and CBDC’ designed to strengthen the international banking system and promote monetary sovereignty. With the launch of Unicoin, the DCMA aims to offer a solution that addresses the challenges posed by traditional cryptocurrencies while maintaining the benefits of a decentralized financial system.
This comes after the International Monetary Fund (IMF) published a report on the potential risks of crypto assets to the international monetary system and recommended not to provide legal tender status to crypto assets.
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. According to the DCMA, Unicoin is a best-in-class money commodity for strengthening monetary sovereignty with a digital economic union.
DMCA claimed that it recieved tremendous response to the announcement, with emerging market participants expressing hope that 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.