UAE and India’s Central Banks Sign MoU to Collaborate on Fintech and CBDCs

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On March 15, the Central Bank of the UAE and Reserve Bank of India signed a memorandum of understanding (MoU) in Abu Dhabi. As per the state news agency WAM, the central banks will focus on collaborating in the field of fintech, particularly Central Bank Digital Currencies (CBDCs), and explore the possibility of interoperability between CBUAE and RBI’s CBDCs.

They will also jointly conduct proof-of-concept (PoC) and pilot(s) of a bilateral CBDC bridge to facilitate cross- border CBDC transactions of remittances and trade. The MoU also includes technical collaboration and knowledge sharing on fintech and financial products and services. This agreement is expected to enable joint experimentation and digital innovation initiatives between the central banks, reduce costs, increase efficiency of cross-border transactions, and further economic ties between India and the UAE.