The RBI and the UAE central financial institution on Wednesday signed an settlement to reinforce cooperation in numerous areas, together with exploring interoperability of Central Financial institution Digital Currencies (CBDC).
Underneath the MoU (memorandum of understanding), the 2 central banks will collaborate on numerous rising areas of FinTech, particularly Central Financial institution Digital Currencies (CBDCs) and discover interoperability between the CBDCs of CBUAE and RBI, the Indian central financial institution mentioned in a press release.
Based on the assertion, the CBUAE and RBI will collectively conduct proof-of-concept (PoC) and pilot(s) of the bilateral CBDC bridge to facilitate cross-border transactions of remittances and commerce.
This bilateral engagement of testing cross-border use instances of CBDCs is anticipated to cut back prices, improve the effectivity of cross-border transactions and additional the financial ties between India and UAE, it added.
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