The Apex banks in India and the United Arab Emirates (UAE) have announced a collaboration aimed at creating a cross-border central bank digital currency (CBDC).
Announcing the partnership on Wednesday, the Reserve Bank of India said that the two countries have signed a Memorandum of Understanding (MoU) that would see to the testing of a cross-border CBDC for remittances.
“The Reserve Bank of India (RBI) and the Central Bank of the United Arab Emirates (CBUAE) signed a Memorandum of Understanding (MoU) today in Abu Dhabi, to enhance cooperation and jointly enable innovation in financial products and services.
“Under the MoU, the two central banks will collaborate on various emerging areas of fintech, especially central bank digital currencies (CBDCs), and explore interoperability between the CBDCs of CBUAE and RBI.
”CBUAE and RBI will jointly conduct proof-of-concept (PoC) and pilot(s) of bilateral CBDC bridge to facilitate cross-border CBDC transactions of remittances and trade.
The RBI added the partnership which will see to the testing of a cross-border use case of CBDCs is expected to reduce costs, increase efficiency of cross-border transactions, and further the economic ties between India and UAE.
