The RBI and the Central Bank of the United Arab Emirates on Wednesday signed an agreement to improve cooperation in various areas, including exploring the interoperability of Central Bank Digital Currencies (CBDC).
Under the Memorandum of Understanding, the two central banks will collaborate in various emerging areas of FinTech, most notably Central Bank Digital Currencies (CBDCs), and explore interoperability between CBUAE and RBI CBDCs, the Indian central bank said in a statement .
According to the statement, the CBUAE and RBI will jointly conduct a proof-of-concept (PoC) and pilot(s) of the bilateral CBDC bridge to facilitate cross-border remittance and trade transactions.
This bilateral commitment to testing cross-border use cases of CBDCs aims to reduce costs, increase the efficiency of cross-border transactions and boost economic ties between India and the UAE, he added.
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