RBI-UAE signs collaboration for CDBC transactions

Current Context: Reserve bank of India and UAE has signed a memorandum of understanding with the central bank of UAE for developing the area of Central bank digital currency (CDBC) cross border transactions.

• The two central banks will provide proof-of-concept and pilot projects of CDBC to facilitate cross border payments and remittances and trades.
• This will reduce costs and increase in the efficiency of cross-border transactions by use of CDBC and increase further ties between the two nations.
• It will provide technical collaboration and financial services. RBI will run pilot projects of CDBC in both wholesale and retail segments in 2022 in collaboration with other banks.
• A CDBC or e-retail rupee is a digital currency is backed by a regulator. More than 60 central banks will take part in this.
• Central bank digital currency (CDBC) will provide easier access to cross border transactions.

Question:

Q.1 Reserve bank of India and __________ has signed a memorandum of understanding with the central bank of UAE for developing the area of Central bank digital currency (CDBC) cross border transactions.
a. UAE
b. US
c. Australia
d. Canada