India and UAE Forge Alliance to Strengthen Cross-Border Central Bank Digital Currency Transactions – Bitcoin News

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India’s central bank, the Reserve Bank of India (RBI), and the Central Bank of the United Arab Emirates (UAE) have teamed up to improve cross-border central bank digital currency (CBDC) transfers of remittances and trade. The central banks anticipate that the collaboration will lessen costs, increase the efficiency of cross-border transactions, and foster the economic ties between India and UAE.

India and UAE Unite for CBDCs

On Wednesday, the Reserve Bank of India (RBI) declared an alliance with the Central Bank of the United Arab Emirates for the advancement of both countries’ central bank digital currency (CBDC) endeavors.

“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,” the RBI detailed.

“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,” India’s central bank clarified, adding:

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.

India launched its digital rupee experiment in November 2020 for the wholesale sector, and in December for the retail sector. RBI Executive Director Ajay Kumar Choudhary expressed earlier this month that the nation’s CBDC will serve as an alternative to cryptocurrency.

Noting that “The MoU also provides for technical collaboration and knowledge sharing on matters related to fintech and financial products and services,” the RBI concluded:

This bilateral engagement of testing 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.

In February, the RBI reported that 50,000 users and 5,000 merchants are using digital rupees.

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cross border CBDC, digital rupee, India, india central bank digital currency, India UAE, India UAE central bank digital currencies, RBI, rbi cbdc, rbi central bank digital currency, UAE, UAE central bank digital currency

What do you think about India’s central bank and the Central Bank of the United Arab Emirates forging an alliance to strengthen CBDC work? Let us know in the comments section below.

Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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