India and the United Arab Emirates (UAE) announced that they will cooperate on central bank digital currencies (CBDC) by launching a joint pilot program, according to a press release by the Reserve Bank of India (RBI).
RBI has signed a Memorandum of Understanding (MoU) with the Central Bank of the United Arab Emirates (CBUAE) to “develop cooperation and jointly drive innovation in financial products and services”.
Under the terms of the MOU, central banks will collaborate in some emerging FinTech sectors, including research on CBDC interoperability published by the RBI and CBUAE.
Central banks plan to jointly conduct proof-of-concept and pilot tests of bilateral CBDC bridges designed to facilitate remittance and trade-related cross-border CBDC transactions.
“This bilateral engagement in testing the cross-border use case of CBDCs is expected to reduce costs, increase the efficiency of cross-border transactions and further advance economic ties between India and the UAE,” the press release said.
India’s CBDC development is among the most advanced in the world, with CBDC (rCBDC) pilot currently underway with over 50,000 customers in 15 cities and 10,000 vendors participating in the trial. If the pilot goes smoothly, RBI aims to launch the rCBDC at full scale by the end of 2023.
In the US, blockchain operator Tassat has announced that the Fed will provide access to the FedNow payment system, which is expected to be launched as a pilot project in 2023.
CBDCs of bitcoin It is also expected to benefit from Blockchain technology, the technology behind it.
*Not investment advice.
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