UAE, India central banks sign collaboration agreement on fintech, digital currencies

UAE, India central banks sign collaboration agreement on fintech, digital currencies

The Central Bank of the UAE signed on Wednesday an MoU with the Reserve Bank of India to further innovation in financial products and services.

Under the agreement signed in Abu Dhabi, the two national central banks will collaborate on fintech, including on digital currencies and interoperability between the two entities.

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“CBUAE and RBI will together conduct proof-of-concept (PoC) and pilot(s) of bilateral CBDC bridge to facilitate cross-border CBDC transactions of remittances and trade,” state-run Emirates News Agency (WAM) reported.

The agreement also covers technical collaboration and knowledge sharing on the same lines, including emerging trends, regulations and policies.

“The MoU is expected to foster joint experimentation with regard to CBDCs and facilitate other digital innovation initiatives between the CBUAE and the RBI,” the report said.

“This bilateral engagement of testing cross-border use case of CBDCs is expected to reduce costs, increase efficiency of cross border transactions and further the economic ties between India and UAE,” it added.

Last month, the two countries marked one year since the signing of the landmark UAE-India Comprehensive Economic Partnership Agreement. It was the UAE’s first bilateral agreement and India’s first with a MENA-region nation.

Alongside marking the