Close up picture of Indian rupee.

India, UAE to collaborate on cross-border central bank digital currencies

Posted on

The central banks of India and the United Arab Emirates (UAE) will jointly run pilot programs on their central bank digital currencies (CBDCs), according to a Wednesday press release from the Reserve Bank of India (RBI). 

See related article: China’s WeChat social media giant integrates digital yuan into payment platform

Fast facts

  • The Indian central bank and its UAE counterpart have signed a memorandum of understanding in Abu Dhabi to explore the “interoperability” between the two countries’ CBDCs. 
  • In this case, interoperability refers to the ease of flow between CBDCs of one country to and from another. 
  • The bank’s activities will include jointly conducting “proof-of-concept and pilot(s) of bilateral CBDC bridge to facilitate cross-border CBDC transactions of remittances and trade,” the announcement said.
  • India has been testing a retail CBDC in 15 cities since last November, with plans to expand trials. In December, the country also launched a wholesale CBDC pilot to test the settlement of secondary market transactions in government securities.  
  • The UAE’s central bank last month announced its plans to launch its CBDC, among other blockchain-related initiatives, as part of efforts to become a financial and digital payment hub.
  • According to a Monday report by U.K. technology market researcher Juniper Research, the global value of CBDCs is expected to grow from US$100 million today to US$213 billion by 2030, once virtual money gains greater adoption for domestic payments. 

See related article: UAE central bank to issue CBDC, promote digital asset growth

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *