IMF Rejects Related To “Unicoin” CBDC Project

Key Points:

• The International Monetary Fund (IMF) has released a statement saying that it is not involved in the so-called Central Bank Digital Currency (CBDC) project “Unicoin”.
• The DCMA acknowledges that the IMF “has not officially endorsed the Universal Monetary Unit.”
• The confusion about the agency’s relationship with Unicoin is due to the DCMA announcing the launch of Unicoin during the spring meetings of the IMF.

The International Monetary Fund (IMF) said in a statement that it is not related to a purported CBDC called Unicoin, according to CryptoSlate.

On April 10, 2023, at the 2023 International Monetary Fund Spring Meeting, The Digital Currency Monetary Authority (DCMA) announced the official launch of a national central bank digital currency. (CBDC) to strengthen the monetary sovereignty of participating central banks and comply with recent crypto-asset policy recommendations proposed by the Monetary Fund.

The International Monetary Fund has released a statement saying that it is not involved in the so-called Central Bank Digital Currency (CBDC) project “Unicoin”, and pointed out that the organization has do not join the Digital Currency Financial Administration (DCMA) or Unicoin.

The confusion surrounding the IMF’s relationship with Unicoin is due to the DCMA announcing the Unicoin launch during the Monetary Fund’s spring meetings and following a flurry of misinformation in the media spread.

The DCMA’s initial press release acknowledged that the IMF “has not officially endorsed the Global Monetary Unit.” Instead, it said that the IMF was merely reviewing the project’s white paper and did not object to specific details of the project.

“Although the IMF has not officially endorsed Universal Monetary Unit, in reviewing the DCMA’s Whitepaper and in weekly team discussions, the IMF has yet to state any objections to UMU’s FX premium rates and its monetary approach.”

George Walker, a Partner at Practus, LLP, specializing in international law, facilitated meetings between the DMCA and the IMF, states.

Despite the DCMA’s meaningful engagement with governments, it appears that central banks are still the issuer of Unicoin. Despite its name, the DCMA professes to collaborate with authorities rather than being a sovereign authority. As a result, Unicoin is better categorized as a private stablecoin than a CBDC if it exists in a useable form.

Furthermore, it appears that the company was only recently created. Despite its self-proclaimed position as a “world leader,” it has few ties.

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