Central banks of UAE and India partner for cross-border CBDC testing
The central banks of the United Arab Emirates (UAE) and India have partnered to foster innovation in financial services, including central bank digital currencies (CBDCs).
India and UAE central banks partner to explore CBDCs and other innovations
The Central Bank of the UAE (CBUAE) and the Reserve Bank of India (RBI) signed a memorandum of understanding (MoU) in Abu Dhabi designed to enhance cooperation between the two institutions.
In particular, the pair wish to collaborate on CBDCs to explore their interoperability. The CBUAE and the RBI will conduct joint proof of concept and pilots of bilateral CBDC cross-border transactions, focusing on remittances and trade.
It’s hoped that by working together the central banks can reduce the costs and boost the efficiencies of cross border transactions and deepen economic ties between India and the UAE.
The MoU will also see both banks share knowledge on emerging trends, regulations and policies.
Last month, the CBUAE launched its Financial Infrastructure Transformation (FIT) programme in a bid to accelerate digital transformation in the country’s financial services sector.
The CBUAE says the FIT programme consists of nine key initiatives to boost the UAE’s competitiveness as it looks to become a “financial and digital payment hub”. The programme is set for “full integration” by 2026.
