India, UAE to explore CBDC bridge to facilitate trade, remittances without USD

India, UAE to explore CBDC bridge to facilitate trade, remittances without USD


The bridge would be the second for the UAE, whose banks successfully participated in the mBridge project last year with Hong Kong, China and Thailand.

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The Reserve Bank of India (RBI) and Central Bank of the United Arab Emirates (UAE) announced on March 15 that they had signed a memorandum of understanding on collaboration and innovation in financial services.

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The parties will particularly concentrate on central bank digital currency (CBDC) interoperability and will develop a proof-of-concept and pilot program for a CBDC bridge to facilitate remittances and trade. Such a bridge would reduce costs and increase efficiency of transactions, they noted, and strengthen economic ties.

Indian and UAE banking officials held talks

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