India’s central bank, the Reserve Bank of India (RBI), has put forward a proposal for linking the official digital currencies (CBDCs) of BRICS nations — including Brazil, Russia, India, China and South Africa — as a way to simplify cross-border trade and tourism payments. The suggestion, which could be tabled at the 2026 BRICS summit that India will host, aims to improve payment efficiency and potentially reduce dependence on the US dollar amidst rising geopolitical tensions.
Key Highlights
- RBI suggests linking BRICS digital currencies to simplify cross-border trade and tourism payments.
- Proposal aims to enhance payment efficiency while reducing reliance on traditional settlement systems.
The RBI has recommended the idea be included as an agenda item for the summit, marking what would be the first formal push to link the digital currencies of BRICS members if accepted. The initiative builds on a 2025 BRICS declaration calling for greater interoperability of member nations’ payment systems.
India’s own central bank digital currency — the e-rupee — has attracted millions of retail users since its launch in late 2022, and the RBI says it wants to expand its global utility by connecting it with other countries’ CBDCs. However, none of the BRICS nations have fully launched their digital currencies yet, with most still running pilot programs.
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The proposal has geopolitical implications, especially given concerns in Washington about moves that could weaken the dollar’s dominance. The RBI, while pursuing this linkage, has clarified it does not intend the effort to be a form of de-dollarisation.
