The central bank of India, the Reserve Bank of India (RBI) and the Central Bank of the United Arab Emirates (UAE) have agreed to unite in remittance transactions and cross-border central bank digital currency (CBDC) trading. The move is “anticipated to reduce costs, increase the effectiveness of cross-border deals and advance the beneficial relationship between India and the UAE,” India’s central bank explained.
India and UAE Unite in CBDC
India’s central bank, the Reserve Bank of India (RBI), on Wednesday launched a collaboration with the Central Bank of the United Arab Emirates to increase the sweat of both countries’ central bank digital currency (CBDC).
“The Reserve Bank of India (RBI) and Central Bank of the United Arab Emirates (CBUEA) signed a Moment Memorandum of Understanding (MoU) in Abu Dhabi, to enhance cooperation and jointly enable discovery in fiscal products and services,” the RBI explained.
“Under the MoU, the two central banks will unite in the colorful field of fintech, especially central bank digital currencies (CBDC) and explore interoperability between CBDC CBUAE and RBI,” the Indian central bank continued, developing
CBUAE and RBI will jointly conduct a proof of conception (PoC) and pilot from bilateral CBDC lands to smoothen cross-border CBDC remittance and trading transactions.
India started its digital rupee flight last November for the non-commercial sector, and in December for the retail sector. RBI Executive Director Ajay Kumar Choudhary said earlier this month that the country’s CBDC would act on a whim for cryptocurrencies.
Noting that “the MoU also provides for specific collaboration and knowledge sharing on matters related to fintech and fiscal products and services,” the RBI concluded
Bilateral involvement in testing CBDC cross-border use cases is anticipated to reduce costs, increase the effectiveness of cross-border agreements and advance the beneficial relationship between India and the UAE.
In February, the RBI revealed that 5,000 drug dealers and 50,000 traffickers were using the digital rupee.
India Post, UAE Unite to Boost Cross-border Central Bank Digital Currency Offering first appeared on BTC Wires.