India’s central bank, the Reserve Bank of India (RBI), has proposed linking the official digital currencies of BRICS nations to simplify cross-border payments for trade and tourism, according to a report. If approved, this would be the first time such a proposal is formally placed before a BRICS summit.
The RBI has suggested that the proposal be included on the agenda of the 2026 BRICS summit, which India is set to host later this year. The BRICS grouping includes Brazil, Russia, India, China, and South Africa, along with other member countries. The move comes at a time of rising geopolitical tensions and could help reduce reliance on the US dollar for international transactions.
The proposal builds on commitments made at the 2025 BRICS summit held in Rio de Janeiro. In that declaration, member nations agreed to work towards interoperability between their payment systems to improve cross-border transactions. The RBI’s latest recommendation signals India’s continued push to strengthen digital currency connectivity within the BRICS bloc, particularly for trade finance and tourism payments.
India’s own digital currency, the e-rupee, has seen steady adoption since its launch in December 2022, with 7 million retail users so far. The RBI has been encouraging usage by enabling offline payments and allowing fintech companies to offer digital currency wallets. While India has global ambitions for the rupee, the central bank has clarified that these steps are not aimed at de-dollarization, but at improving cross-border transactions by linking CBDCs with other countries.
However, linking digital currencies across BRICS nations presents technical and regulatory challenges. Successful implementation would depend on interoperable technology, clear governance rules, and mechanisms to manage imbalanced trade volumes between countries. Sources said that hesitation among members to adopt technology platforms developed by other nations could slow progress. One possible solution to handle trade imbalances could be bilateral foreign exchange swap arrangements between central banks.
BRICS was founded in 2009 by Brazil, Russia, India, and China, and later expanded to include South Africa. The group has since grown further with the addition of countries such as the United Arab Emirates, Iran, and Indonesia. Despite earlier challenges, including a proposal for a common currency that was later dropped, BRICS continues to pursue a larger role in the global economic system amid growing trade tensions.
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