The Reserve Bank of India and the Central Bank of the UAE signed a Memorandum of Understanding (MoU) to encourage financial innovations like digital currencies. These two organizations are significant financial institutions in central Asia and the middle east.
The Memorandum of Understanding was signed As the global balance of power shifts from Western countries to those in Asia and the Middle East, two strong nations will cooperate in Abu Dhabi.
“Especially Central Bank Digital Currencies (CBDCs),” Financial Technology (FinTech) will be embraced by the partnership. According to the Agreement, both financial institutions would work to ensure that RBI’s and CBUAE’s CBDCs (central bank digital currencies) may exchange information with one another.
In addition, RBI and CBUAE will set a proof-of-concept (PoC) and pilot(s) of a bilateral CBDC bridge to allow cross-border CBDC transactions for commerce and remittances.
According to a press statement from RBI, “This bilateral engagement of testing cross-border use case of CBDCs is intended to decrease costs, improve the effectiveness of cross-border transactions, and strengthen the economic relations between India and UAE.”
Many financial partnerships are being formed to challenge the supremacy of the USD and EUR as the globe shifts from being bipolar to multipolar.
Compiled by Coinbold