India’s Reserve Bank and the UAE Central Bank have agreed to cooperate on cross-border central bank digital currency (CBDC) deals for remittances and trade. The partnership is anticipated to increase financial innovation, reduce costs and enhance the cooperation between the two countries, according to the RBI.
The two central banks will jointly conduct proof-of-concept (PoC) and pilot programmes of CBDC transactions. India began testing its digital rupee pilot in November 2020 for the non-commercial sector and in December 2020 for retail use. The RBI sees its CBDC as distinct from cryptocurrencies.