Summary:
- The RBI proposed linking BRICS digital currencies to streamline transactions.
- The plan aims to reduce reliance on the U.S. dollar amid increasing tensions.
- Member consensus on technology standards and systems required.
INDIA'S CENTRAL BANK, the Reserve Bank of India, proposed that BRICS nations link their official digital currencies to make cross-border trade and tourism payments faster and more efficient, according to Reuters. The move is aimed at reducing dependence on the U.S. dollar amid rising geopolitical tensions.
RBI has recommended that the proposal be placed on the agenda for the 2026 summit of BRICS, according to Reuters.
If accepted, it would mark the first formal attempt to connect the central bank digital currencies of BRICS members, which include Brazil, Russia, India, China and South Africa, along with newer members such as the UAE, Iran and Indonesia.
The proposal builds on a 2025 BRICS declaration in Rio de Janeiro that called for interoperability among members’ payment systems. RBI has previously said it is open to linking India’s e-rupee with other nations’ CBDCs to speed up cross-border transactions, while stressing that this is not an explicit push for de-dollarization.
None of the core BRICS members have fully launched digital currency, but all are running pilot programs. India’s e-rupee has attracted about 7 million retail users since its launch in December 2022, while China has pledged to expand the international use of the digital yuan.
Sources cautioned that progress would depend on agreement over technology standards, governance rules and mechanisms to manage trade imbalances. One option under discussion is the use of bilateral foreign exchange swap arrangements between central banks, with settlements conducted weekly or monthly.
The renewed focus on BRICS cooperation comes as former U.S. President Donald Trump has revived tariff threats and described the bloc as “anti-American.” Also, Trump’s increase of fees and requirements for B1 and B2 visas has impacted Indian workers particularly.
