DCMA pilots a point-to-point implementation of Unicoin

Unicoin's Point-to-Point Digital Cash system represents a private self-custody form of money that isn’t shared on any distributed ledger. The system basically transforms a mobile device into a hardware wallet with its own localised ledger, and it allows it to transact with another device operating the same Unicoin Digital Cash Protocol. 

Unicoin offers both a bank wallet for regulated electronic cash and a mobile wallet for private digital cash. Furthermore, Unicoin allows its users to attach their mobile wallets to their bank wallets and transfer money between them as if they were depositing and withdrawing cash into a bank account. Mobile devices that have internet connectivity benefit from additional features such as foreign exchange rates. In this case, digital cash mobile wallets are able to settle money transfers in any legal tender.

How does the system work? 

Firstly, users need to download and install the mobile wallet on their mobile devices and add funds by performing a transfer from a Unicoin bank wallet. Users can also receive funds from another Unicoin mobile wallet holder or by purchasing Unicoin from an approved money services provider. Money transfer between mobile devices is achieved via a combination of wireless point-to-point technology, Bluetooth, and Near-Field Communications (NFC). 

The company does not advise keeping large sums on the mobile digital cash wallet because of the risks involved. Mainly, should the mobile device be lost or stolen, there is no way to recover the funds inside the wallet. 

The digital cash solution offered by Unicoin operates as a standalone money operating system that can integrate into ATM machines, Point of Sale (POS) devices, and public payment systems such as bus and train station ticketing and payment machines. 

According to the official press release, developing countries without a high concentration of smartphones or internet connectivity stand to benefit the most from Unicoin digital cash. The system can be used by merchants in rural areas, by the unbanked, or to support financial inclusion.

The Digital Currency Monetary Authority’s CBDC

In April 2023, the Digital Currency Monetary Authority (DCMA) launched an international CDBC that complies with IMF-proposed crypto assets policy recommendations.

This international CBDC allows banks to attach SWIFT Codes and bank accounts to a UMU digital currency wallet with the purpose of conducting cross-border payments over digital currency rails that bypass the correspondent banking system. This method is available at wholesale FX rates and supports instant real-time settlements.