Breaking Barriers: UAE and India to Test Cross-Border CBDC Transactions

The Central Bank of the United Arab Emirates (CBUAE) and the Reserve Bank of India (RBI) have signed a Memorandum of Understanding (MoU) to promote innovation in Central Bank Digital Currencies (CBDCs) and other digital currency initiatives. The two central banks will collaborate on fintech, including digital currencies and interoperability between the two entities.

Under the agreement signed in Abu Dhabi, the CBUAE and RBI will conduct proof-of-concept (PoC) and pilot(s) of a bilateral CBDC bridge to facilitate cross-border CBDC transactions of remittances and trade. The aim is to make cross-border transactions faster, cheaper, and more efficient.

Last month we reported that the UAE announced it would launch a CBDC as part of its drive toward a cashless society.

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At present, over 95 percent of countries are exploring CBDCs. Learn more about CBDC development:

• Swift’s CBDC Interoperability Solution Gains Support from Central and Commercial Banks After Successful Testing
• The Potential Risks of CBDCs: Cato Institute Calls for Congress to Prohibit Digital Dollar
• Digital Dollar Project outlines principles for US CBDC
• Digital Euro Association calls for strong privacy protections in CBDC development