An announcement made Wednesday has indicated that India and the United Arab Emirates (UAE) will collaborate on the development of a CBDC Pilot. Moreover, the joint statement noted the two nations have signed a Memorandum of Understanding (MoU).
Under the signed MOU, both the Reserve Bank of India (RBI) and the Central bank of the United Arab Emirates (CBUAE) will cooperatively work on innovative products and services in the financial sector.
India and UAE to Develop Joint CBDC
The integration of Central Bank Digital Currency (CBDC) has long been a focal point of the digital asset industry. Moreover, nations all over the globe have made clear their focus is on this area of financial innovation and progress. Now, two nations are working together for that same purpose.
In a statement issued today, India and the UAE are set to collaborate on the development of a CBDC Pilot. Specifically, they have come together to “collaborate on various emerging areas of FinTech,” noting the CBDC as a focal point.
Additionally, the recently signed MoU will see the partnership “conduct proof-of-concept (PoC) and pilot(s) of bilateral CBDC bridge to facilitate cross-border CBDC transactions of remittance and trade.” Subsequently, working to “reduce costs, increase the efficiency of cross border transactions and further the economic ties between India and UAE.”
The development follows India’s development of its own retail CBDC pilot. Conversely, Coindesk notes it has been expanded to 15 cities, 50,000 customers, and 10,000 merchants. consequently, it is seeking the launch of a full-scale CBDC by the conclusion of the year.