In order to "improve cooperation and jointly facilitate innovation in financial goods and services," the Reserve Bank of India (RBI) and the Central Bank of the United Arab Emirates (CBUAE) collaborated and signed an agreement.
On March 15, the RBI made public the signing of a Memorandum of Understanding (MoU) in Abu Dhabi between the regulatory body and the CBUAE, with the two parties agreeing to cooperate in a variety of fintech areas.
It's interesting to note that the Memorandum will facilitate "technical collaboration and knowledge sharing" on various FinTech and financial products and services-related themes.
Notably, the Agreement is meant to create a correlation between the central banks of India and the UAE on many developing FinTech domains, including the analysis of the interoperability of the Central Bank Digital Currencies (CBDCs) of both India and the UAE, according to the RBI's announcement.
In particular, as the RBI has stated, the bilateral review of CBDCs between the two nations is clearly focused on lowering costs, improving the efficiency of cross-border transactions, and strengthening ties between India and the UAE on the commercial front.
Notably, India has launched retail CBDC in a number of locations, and as a result, the nation has been able to connect with more than 50,000 consumers and 10 merchants. By the end of 2023, the nation also intends to introduce a digital currency.
The alliance between India and the UAE is probably going to strengthen both nations' positions in the cryptocurrency market and aid in their future development.