As opponents of central bank digital currencies (CBDCs) are getting more vocal in their criticism of this type of digital version of paper money that many countries are either adopting or are close to doing so. This is one of the pillars of financial globalism, the International Monetary Fund (IMF), has made its stance very clear.
The IMF’s Spring Meetings this year saw the announcement of the Universal Monetary Unit (UMU, aka Unicoin) — an “international central bank digital currency” that was created by Digital Currency Monetary Authority (DCMA).
DCMA said in a statement that UMU functions like a CBDC and is a legal and global money commodity. The purpose of this particular iteration of a CBDCs is to make sure banking regulations are enforced, as well as to protect “the financial integrity of the international banking system.”
This currency will be used by banks via SWIFT codes and bank accounts linked to a UMU digital wallet.
The scheme is supposed to allow for digital cross-border payments modeled after SWIFT, and promises best wholesale exchange rates of settlement currencies and real-time settlement, “while bypassing the correspondent banking system.”
At the same time, IMF officials are describing the current cross-border payment system as slow, expensive, and risky, while declaring that UMU’s goal is not disruption of the international monetary system – such as it is – but rather, to further “strengthen” it.
Not only that, but DCMA looks set on rebranding the term “crypto” – normally associated with decentralized digital currencies that leave central banks and governments out of the equation. “Crypto 2.0” is how DCMA would market UMU, and likely, CBCDs in general.
Meanwhile, critics of CBDCs are using strong words to express their opposition to the trend, with some calling it a path toward financial slavery that is always a handy companion to political tyranny.
More criticism has to do with CBDCs being seen as a way of introducing social credit scores and digital IDs, thus having individuals fully ceding to the government control over their own assets and/or the amount they spend.
Unlike cash and decentralized crypto, CBCDs are feared to spell the end of private financial affairs, and usher in even more surveillance by the authorities.
Update — April 18, 2020: The article was updated to reflect that Unicoin was launched at an IMF event but not launched by the IMF.