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RBI, UAE central bank sign MoU on interoperability of their CBDCs

Move is expected to reduce costs, boost efficiency of cross-border dealings and strengthen economic ties between India and UAE

RBI | UAE | Rupee

BS Reporter  |  Mumbai 

India's CBDC roll-out likely this fiscal with wholesale businesses

The central banks of India and the United Arab Emirates have signed a memorandum of understanding (MoU) to explore interoperability between their respective central bank digital currencies, among other things.

In a statement on Wednesday, Reserve Bank of India (RBI) said, “ and the Central Bank of the United Arab Emirates (CBUAE) signed a MoU in Abu Dhabi to enhance cooperation and jointly enable innovation in financial products and services”.

Under the MoU, the two central banks – & CBUAE – will collaborate on various emerging areas of FinTech, especially Central Bank Digital Currencies (CBDCs) and explore interoperability between the CBDCs of CBUAE and .

Further, 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.

This bilateral engagement of testing cross-border use cases of CBDCs is expected to reduce costs, increase efficiency of cross border transactions and further the economic ties between India and . The MoU also provides for technical collaboration and knowledge sharing on matters related to Fintech and financial products and services, the central bank said in its statement.

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First Published: Wed, March 15 2023. 19:06 IST