The UAE and India digital currency is a strategic partnership is taking shape in the field of central bank digital currency (CBDC). The two countries want to strengthen their cooperation in the CBDC field and explore the opportunities offered by this innovation. They hope to facilitate trade and financial exchanges between them and the rest of the world. India and the United Arab Emirates also want to position themselves as major players in Web 3 and cryptocurrencies in their region.
A new currency for the United Arab Emirates
The digital fiat currency developed by central banks (CBDC) is different from cryptocurrencies. It offers advantages such as efficiency and cost reduction but requires ensuring financial security and stability and complying with international regulations.
Indeed, the central banks of the United Arab Emirates and India announced on Twitter on Wednesday that they would cooperate to develop their central bank digital currency (CBDC). The two institutions will jointly conduct a feasibility study and a bilateral CBDC pilot project to facilitate cross-border money transfer and trade transactions, according to the statement. Both countries are already ahead in this sector.
The United Arab Emirates has made Web 3 and cryptocurrencies an economic priority, with a $2 billion investment plan in this area, according to CoinDesk. India is not far behind. Its national digital currency, the digital rupee, is being tested in 15 major cities across the country, with 50,000 regular users and 10,000 merchants. The digital rupee could officially launch before the end of the year.
This is an important crypto hub in the making that needs to be strengthened in this part of the world.
The United Arab Emirates wants to attract crypto-experts
Countries that see the potential of Bitcoin (BTC) and cryptocurrencies are vying for rare and precious crypto-experts. The United Arab Emirates (UAE) is offering them “golden visas” allowing them to reside in the UAE for ten years.
Indeed, the UAE wants to attract crypto-experts and be at the forefront of crypto technologies.
Thani Al Zeyoudi, UAE Minister of State for Foreign Trade, said:
We want to make sure we take advantage of the fourth industrial revolution. So the latest technologies, whether it’s the Internet of Things (IoT), blockchain (DLT), or artificial intelligence (AI).
As a result, blockchain and FinTech companies can obtain a 10-year visa for their employees and their families. This visa will give them access to public and private services in the UAE. It can be renewed indefinitely.
This visa is a unique opportunity for crypto-entrepreneurs who want to take advantage of a conducive environment for their activity. The United Arab Emirates thus hopes to become a global hub for digital innovation.