India Partners With UAE On CBDC Development

India and the United Arab Emirates (UAE) have joined forces to develop their Central Bank Digital Currencies (CBDC). The collaboration aims to explore and develop new technologies that can enhance the transparency, efficiency, and security of financial transactions. This move is seen as a crucial step towards achieving a modernized financial ecosystem across the Indian subcontinent and the Middle East. With the growing popularity of cryptocurrencies, CBDCs are becoming more vital in maintaining the stability of financial markets. This partnership between India and the UAE will enable them to share knowledge and resources, enabling them to create a more reliable and secure system for online transactions.

The Central Bank of the United Arab Emirates (CBUAE) and the Reserve Bank of India (RBI) have joined forces in a partnership aimed at advancing the development of central bank digital currencies (CBDCs) in their respective countries. The two central banks have signed an MoU to drive innovation in financial products and services, particularly CBDCs, and will be conducting trials on CBDC interoperability for efficient cross-border transactions. Both central banks will conduct proof-of-concept (PoC) and pilot(s) of bilateral CBDC bridge, for remittances and trade, but the type of program whether wholesale or retail is yet unknown. Meanwhile, over 100 countries worldwide are studying CBDCs, with many nations viewing this digital currency as an alternative to volatile cryptocurrencies. The success of “Icebreaker,” a CBDC aimed at testing the possibility of cross-border transactions between retail CBDC systems involving the central banks of Israel, Norway, and Sweden was recently announced.

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