India-UAE Inks MoU on Digital Currencies

Guwahati: A Memorandum of Understanding (MoU) on digital currency has been signed between India and the UAE.

A Memorandum of Understanding (MoU) was signed on Thursday by the Central Bank of India, the Reserve Bank of India (RBI), and the Central Bank of the United Arab Emirates (CBUAE).

The Mou was signed with the intention of fostering collaboration and fostering cooperative innovation in financial services and goods.

According to the Agreement, the central banks of India and the UAE will work together to run pilot projects for CBDCs, or central bank digital currencies.

A press release published on the RBI website said, “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 the pilot projects of the digital currencies “to facilitate cross border CBDC transactions of remittances and trade.”

According to the statement, the “bilateral CBDC bridge” is expected to aid in the reduction of costs. In addition to that, it will help “increase the efficiency of cross-border transactions and further the economic ties between India and UAE.”

Moreover, it allows for technological cooperation and knowledge exchange between the UAE and India “on subjects relevant to Fintech and financial products and services”.

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