HomeUncategorizedFirst, the Abu Dhabi Bank and Bank of China signed a digital...

First, the Abu Dhabi Bank and Bank of China signed a digital currency agreement

First, the Abu Dhabi Bank and Bank of China signed a digital currency agreement

In a significant development at the Chinese Belt and Road Summit, the Bank of China (BoC) unveiled its collaboration with the UAE’s largest bank, First Abu Dhabi Bank (FAB), signing a pivotal cooperation agreement. Concurrently, the People’s Bank of China (PBOC) solidified a digital currency accord with the Central Bank of the UAE, further strengthening ties between the economic powerhouses. Notably, the collaboration extends beyond the financial realm, as both central banks are actively engaged in the mbridge project, focusing on cross-border payments in conjunction with the Bank for International Settlements (BIS) and other central banks from Thailand and Hong Kong.
The summit’s agenda also hinted at potential cooperation with the Bank of Indonesia, although clarity on whether this pertains to digital currency initiatives still needs to be discovered. Having initiated a digital rupiah program, Indonesia is a critical player in the rapidly evolving landscape of central bank digital currencies (CBDCs). Shu-Pui Li, the UAE’s advisor on digital currency, emphasized the strategic importance of aligning with China’s digital yuan (CNY), particularly in facilitating seamless transactions between Chinese companies and UAE corporates.
The collaboration between BoC and FAB gains additional significance due to the substantial Chinese workforce in the UAE, amounting to 300,000 nationals. Moreover, with 60% of Chinese trade with the Middle East and North Africa flowing through the UAE, the integration of digital currencies streamlines financial transactions, reducing costs and mitigating potential delays.
In parallel developments, First Abu Dhabi Bank (FAB) recently concluded a successful pilot of JP Morgan’s Coin Systems solution, marking a significant stride in its digital currency endeavors. The UAE, having announced comprehensive plans for central bank digital currency (CBDC) implementation in early 2023, is actively prioritizing the mbridge cross-border payment project. Subsequent initiatives include a bilateral cross-border CBDC project with India and proofs of concept for domestic and wholesale CBDCs, set to conclude by mid-2024. R3 has been enlisted as a strategic partner for domestic CBDC implementation, emphasizing the UAE’s commitment to innovation and leadership in the evolving landscape of digital currencies.

Key Points:
• Bank of China (BoC) collaborates with First Abu Dhabi Bank (FAB) in a groundbreaking agreement at the Chinese Belt and Road Summit.
• People’s Bank of China (PBOC) solidifies a digital currency accord with the Central Bank of the UAE, reinforcing economic ties.
• Both central banks actively participate in the mBridge project, focusing on cross-border payments alongside the Bank for International Settlements (BIS), Thailand, and Hong Kong.
• Potential collaboration with the Bank of Indonesia was suggested at the summit, highlighting Indonesia’s role in the evolving landscape of central bank digital currencies (CBDCs).
• Shu-Pui Li, UAE’s digital currency advisor, underscores the strategic importance of aligning with China’s digital yuan (eCNY) for seamless transactions between Chinese companies and UAE corporates.
• BoC and FAB collaboration gains significance with 300,000 Chinese nationals working in the UAE and 60% of Chinese trade with the Middle East passing through the UAE.
• First Abu Dhabi Bank (FAB) completes a successful pilot of JP Morgan’s Coin Systems solution, marking a substantial stride in digital currency initiatives.
• UAE announces comprehensive plans for CBDC implementation in early 2023, prioritizing the mBridge cross-border payment project.
• UAE will actively pursue a bilateral cross-border CBDC project with India and proofs of concept for domestic and wholesale CBDCs by mid-2024.
• R3 enlisted as a strategic partner for domestic CBDC implementation, emphasizing the UAE’s commitment to innovation in the digital currency landscape.

PHP Code Snippets Powered By : XYZScripts.com