India and UAE to Collaborate on Developing Digital Currencies

India and the United Arab Emirates will jointly conduct pilot programs on central bank digital currencies, or CBDCs, according to an announcement on Wednesday.

The Reserve Bank of India and the Central Bank of the United Arab Emirates signed a memorandum of understanding in Abu Dhabi to explore the interoperability between the CBDCs of the two countries.

The banks will also "jointly conduct proof-of-concept (PoC) and pilot(s) of bilateral CBDC bridge to facilitate cross-border CBDC transactions of remittances and trade," the announcement said.

India has been testing a retail CBDC in 15 cities reaching more than 50,000 customers, and 10,000 merchants. It hopes to launch a digital currency by the end of the year.

Read More: Unpacking India's CBDC Pilots as Country Prepares for Digital Rupee