Bitcoin inspired a generation of cryptographic store of value and medium of exchange innovations intended to disrupt and to circumvent regulated banking and financial institutions. The International Monetary Fund (IMF) recently 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.

The IMF did not consider the possibility of a new class of cryptographic innovations conceived to not only support but to strengthen the monetary sovereignty of the international banking system (i.e., Crypto 2.0).

The Digital Currency Monetary Authority (DCMA) is a world leader in the advocacy of digital currency innovations for governments and monetary authorities and has innovated a best-in-class design for international Central Bank Digital Currency (CBDC) leveraging a digital economic union.

The IMF states it has a mandate to provide economic and financial stability to its member states. There are some noted encumbrances in the current international monetary system that continually challenge emerging markets, and even some advanced economies, in sustaining their monetary sovereignty.

This paper outlines the blueprint for a best-in-class CBDC design and discusses how a digital economic union and an international CBDC could complement and strengthen the international monetary system.

Several sovereign states have collaborated with the DCMA on a Model Law for an international CBDC, or money commodity, and have provided draft legislation for such outlined in Appendix 1.

by Darrell Hubbard Harvard MBA, M.S. Computer Science