India & UAE join hands to create CBDC eliminating USD

pawanjain

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Quote from: elevates on March 26, 2023, 07:30:11 AM

Quote from: pawanjain on March 23, 2023, 09:19:22 AM

India along with UAE is creating a path for CBDC based payment method which will be used to facilitate remittances and trade.
USA is currently the middleman imposing their charges on these transactions through USD based settlements.
With the creation of new CBDC, the USD charges will be vanished and thus USA will be eliminated as a middleman.
This will definitely provoke USA against India but this will eventually happen and thus valuation of USD will decrease over time.

I was expecting UPI to reach UAE. I remember I saw a few news on mainstream me India discussing UPI & PayU be part of the payment system in a few countries. I vaguely remember UAE, Vietnam, Singapore, and Srilanka adopting it. I am not sure if it will benefit the expat as it is still not clear what would be the fee for transferring from UAE and vice versa. BTW, do you think the government cares about US and Europe? India is still importing oil from Russia.

If the government would care about US they wouldn't be going against them by creating a CBDC afterall.
India is doing what it has to do and this is the only way it will overcome the current issues and develop in future.
UPI has certainly reached many countries now thanks to India. Let's see how far the new CBDC reaches.

elevates

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Quote from: pawanjain on March 23, 2023, 09:19:22 AM

India along with UAE is creating a path for CBDC based payment method which will be used to facilitate remittances and trade.
USA is currently the middleman imposing their charges on these transactions through USD based settlements.
With the creation of new CBDC, the USD charges will be vanished and thus USA will be eliminated as a middleman.
This will definitely provoke USA against India but this will eventually happen and thus valuation of USD will decrease over time.

I was expecting UPI to reach UAE. I remember I saw a few news on mainstream me India discussing UPI & PayU be part of the payment system in a few countries. I vaguely remember UAE, Vietnam, Singapore, and Srilanka adopting it. I am not sure if it will benefit the expat as it is still not clear what would be the fee for transferring from UAE and vice versa. BTW, do you think the government cares about US and Europe? India is still importing oil from Russia.

Clement Kaliyar

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Quote from: avikz on March 23, 2023, 12:50:29 PM

It's definitely a step towards better future. US is the most evil country in the world for obvious reasons and USD is their main strength. This needs to be eliminated from the system entirely.

They are not going to change that and they really like playing the world police and attack countries according to their whim and they are printing money in trillions and it will collapse eventually as the inflation and the bad fiscal policies are showing its cracks .

Quote from: avikz on March 23, 2023, 12:50:29 PM

But honestly I am not sure if these things will materialize. As of now India maintains a good relationship with US. If this CBDC becomes a reality then that relationship will not take much time to change. Indian government will have to balance this properly.

As long as US sees China as their enemy and the relation with Pakistan is not that strong like they used to be in the past they will keep ties with India as long as they think that it is its strategic partner.

teosanru

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Quote from: pawanjain on March 24, 2023, 08:54:54 AM

Quote from: teosanru on March 23, 2023, 06:18:40 PM

Quote from: pawanjain on March 23, 2023, 09:19:22 AM

India along with UAE is creating a path for CBDC based payment method which will be used to facilitate remittances and trade.
USA is currently the middleman imposing their charges on these transactions through USD based settlements.
With the creation of new CBDC, the USD charges will be vanished and thus USA will be eliminated as a middleman.
This will definitely provoke USA against India but this will eventually happen and thus valuation of USD will decrease over time.

Twitter Link

Source: https://cointelegraph.com/news/india-uae-to-explore-cbdc-bridge-to-facilitate-trade-remittances-without-usd

This is a good step and if you see overall most of the countries around the world are doing this. They are starting to use their own currencies than using USD for international trades and remittances. But in your post I don't understand one thing. What are the charges you are talking about? Anyone can transact in USD, there are no charges involved to just use it. The only issue is the forex risk that one carries when it has to trade in a third party currency, rest I don't think there are any transaction charges on this.

US must be charging some kind of fees to use USD for settling the transactions right ?
So from that perspective I assumed that international trades and remittances would be encountering some charges as well.
I guess this is why USD valuation was growing strong and hence they are getting provoked by this move.

I don't think so US is charging or is liable to charge any fees. I mean the settlement is not done through help of US, Indian government just buys USD in open market to pay for such transactions and it only has to pay the exchanging fees or charges which isn't that much, main risk is the hedge risk. US valuation is growing more because of the increasing inflation in the US thereby dollar strengthening measures taken by the government as well.

pawanjain

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Activity: 2702

Merit: 716

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Quote from: teosanru on March 23, 2023, 06:18:40 PM

Quote from: pawanjain on March 23, 2023, 09:19:22 AM

India along with UAE is creating a path for CBDC based payment method which will be used to facilitate remittances and trade.
USA is currently the middleman imposing their charges on these transactions through USD based settlements.
With the creation of new CBDC, the USD charges will be vanished and thus USA will be eliminated as a middleman.
This will definitely provoke USA against India but this will eventually happen and thus valuation of USD will decrease over time.

Twitter Link

Source: https://cointelegraph.com/news/india-uae-to-explore-cbdc-bridge-to-facilitate-trade-remittances-without-usd

This is a good step and if you see overall most of the countries around the world are doing this. They are starting to use their own currencies than using USD for international trades and remittances. But in your post I don't understand one thing. What are the charges you are talking about? Anyone can transact in USD, there are no charges involved to just use it. The only issue is the forex risk that one carries when it has to trade in a third party currency, rest I don't think there are any transaction charges on this.

US must be charging some kind of fees to use USD for settling the transactions right ?
So from that perspective I assumed that international trades and remittances would be encountering some charges as well.
I guess this is why USD valuation was growing strong and hence they are getting provoked by this move.

teosanru

hero member

Activity: 2114

Merit: 619

Quote from: pawanjain on March 23, 2023, 09:19:22 AM

India along with UAE is creating a path for CBDC based payment method which will be used to facilitate remittances and trade.
USA is currently the middleman imposing their charges on these transactions through USD based settlements.
With the creation of new CBDC, the USD charges will be vanished and thus USA will be eliminated as a middleman.
This will definitely provoke USA against India but this will eventually happen and thus valuation of USD will decrease over time.

Twitter Link

Source: https://cointelegraph.com/news/india-uae-to-explore-cbdc-bridge-to-facilitate-trade-remittances-without-usd

This is a good step and if you see overall most of the countries around the world are doing this. They are starting to use their own currencies than using USD for international trades and remittances. But in your post I don't understand one thing. What are the charges you are talking about? Anyone can transact in USD, there are no charges involved to just use it. The only issue is the forex risk that one carries when it has to trade in a third party currency, rest I don't think there are any transaction charges on this.

avikz

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It's definitely a step towards better future. US is the most evil country in the world for obvious reasons and USD is their main strength. This needs to be eliminated from the system entirely.

But honestly I am not sure if these things will materialize. As of now India maintains a good relationship with US. If this CBDC becomes a reality then that relationship will not take much time to change. Indian government will have to balance this properly.

pawanjain

hero member

Activity: 2702

Merit: 716

Nothing lasts forever

India along with UAE is creating a path for CBDC based payment method which will be used to facilitate remittances and trade.
USA is currently the middleman imposing their charges on these transactions through USD based settlements.
With the creation of new CBDC, the USD charges will be vanished and thus USA will be eliminated as a middleman.
This will definitely provoke USA against India but this will eventually happen and thus valuation of USD will decrease over time.

Twitter Link

Source: https://cointelegraph.com/news/india-uae-to-explore-cbdc-bridge-to-facilitate-trade-remittances-without-usd

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