Under the MOU, the two central banks will collaborate in various emerging areas of fintech
Two parties to explore interoperability between CBUAE and RBI’s CBDC
The Union Finance Ministry recently said that Crypto rupees worth INR 130.41 are in circulation as of February 28, 2023.
The Reserve Bank of India (RBI) on Wednesday (March 15) signed a Memorandum of Understanding (MoU) with the Central Bank of the United Arab Emirates (CBUAE) to jointly conduct a proof-of-concept and pilot of a bilateral CBDC to facilitate cross-border CBDC transactions for remittances and trade, and Promote innovation in financial products and services.
According to the MoU, the two central banks will collaborate in various emerging areas of fintech, especially central bank Crypto currency (CBDC), and explore interoperability between CBUAE and RBI’s CBDC, according to an official statement.
“This bilateral engagement in testing the cross-border use cases of CBDC is expected to reduce costs, increase the efficiency of cross-border transactions, and further strengthen economic ties between India and the UAE. The MoU also provides for matters related to fintech and financial products and services technical cooperation and knowledge sharing,” the statement added.
The Crypto rupee is a Crypto token representing fiat currency. The RBI issues Crypto rupees in the same denomination as banknotes and coins, and through banks.
The RBI has launched a Crypto rupee pilot on November 1, 2022 in the wholesale sector (e?-W) and December 1, 2022 in the retail sector (e?-R).
The Union Finance Ministry recently said that Crypto rupees worth INR 130.41 are in circulation as of February 28, 2023.
According to the ministry, out of the total circulation, the retail CBDC share is worth INR 4.14 rupees, while the remaining share, including wholesale CBDC, is worth INR 126.27 rupees.
Currently, nine banks are participating in the wholesale CBDC pilot. State Bank of India, Bank of Baroda, Union Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Yes Bank, IDFC First Bank and HSBC have all participated in the pilot.
On the other hand, SBI, ICICI Bank, IDFC First Bank, Yes Bank, Kotak Mahindra Bank, Bank of Baroda, Union Bank of India, and HDFC Bank are providing retail CBDC services to select users.
Information source: compiled by 0x information from INC42.Copyright belongs to the author Gargi Sarkar, without permission, may not be reproduced