Solution

The Reserve Bank of India and the United Arab Emirates have signed a memorandum of understanding (MoU) to explore interoperability between their respective central bank digital currencies, among other things.     Further, CBUAE and RBI will jointly conduct proof-of-concept (PoC) and pilot(s) of bilateral CBDC bridge to facilitate cross-border CBDC transactions of remittances and trade.      This bilateral engagement of testing cross-border use cases of CBDCs is expected to reduce costs, increase efficiency of cross border transactions and further the economic ties between India and UAE.      The MoU also provides for technical collaboration and knowledge sharing on matters related to Fintech and financial products and services.