The Indian central bank has proposed that the BRICS countries begin discussions on linking their digital currencies. The aim is to simplify cross-border payments for trade and travel. This was reported by Reuters, citing two anonymous sources familiar with the negotiations.<\/p>\n\n\n\n
According to them, the Reserve Bank of India<\/a> (RBI) has recommended that the topic of central bank digital currency (CBDC) interoperability be included on the agenda of the 2026 BRICS summit, which will be hosted by India. If the proposal is approved by the Indian government and other members of the bloc, it would be the first formal step by BRICS towards working with central bank digital currencies.<\/p>\n\n\n\n BRICS brings together Brazil, Russia, India, China<\/a>, and South Africa\u2014economies that together account for a significant portion of global trade. Linking their CBDCs could fundamentally change the way these countries settle payments with each other.<\/p>\n\n\n\n According to Reuters sources, the aim of the proposal is to reduce friction and costs associated with cross-border transactions. However, discussions are still in the early stages and will depend on agreement on technologies, system management, and payment settlement methods.<\/p>\n\n\n\n This would not involve the creation of a single “BRICS currency.” The CBDC link would rather be a technical bridge between the existing digital currencies of individual countries. Even so, it would be a significant step in the development of national digital assets.<\/p>\n\n\n\n The basis for this debate was laid at the 2025 BRICS summit in Brazil, where the need for better interoperability of payment systems, particularly in the areas of trade and tourism, was discussed.<\/p>\n\n\n\n For India, the proposal fits into a broader strategy of expanding the use of its own digital currency, the e-rupee, beyond its borders. Since its launch, the e-rupee has attracted millions of users, and the RBI has previously publicly declared its interest in linking it to other CBDCs to speed up transaction settlement.<\/p>\n\n\n\n The central bank emphasizes that its main goal is efficiency and wider adoption, not an explicit effort to “de-dollarize.” Nevertheless, the move reflects the growing interest of emerging economies in more modern and cheaper methods of international settlement.<\/p>\n\n\n\n In recent years, there has been repeated speculation about the BRICS creating an alternative to the US dollar<\/a> or even a common currency. However, representatives of the bloc reject these interpretations.<\/p>\n\n\n\n In January 2025, Russia responded to US President Donald Trump<\/a>‘s threats regarding tariffs by emphasizing that BRICS is not seeking to replace the dollar or create a common currency. Kremlin spokesman Dmitry Peskov said at the time that cooperation within BRICS focuses on mutual investment and economic coordination.<\/p>\n\n\n\n Brazil, which was often mentioned in connection with the hypothetical “BRICS currency,” made a similar statement. As recently as May 19, the Brazilian central bank dampened expectations that the bloc could create an asset capable of competing with the dominance of the US dollar.<\/p>\n\n\n\n The interconnection of digital currencies would thus have a more technical and practical dimension: faster, cheaper, and more efficient payments between countries that trade intensively with each other. If India’s proposal comes to the table in 2026 and gains support, BRICS could open a new chapter in the use of national digital currencies\u2014without the ambition of rewriting the global monetary order.<\/p>\n\n\n\n Sources:<\/p>\n\n\n\n https:\/\/www.reuters.com\/world\/india\/indias-central-bank-proposes-linking-brics-digital-currencies-sources-say-2026-01-19<\/a><\/p>\n\n\n\n https:\/\/economictimes.indiatimes.com\/news\/economy\/policy\/rbi-in-final-stages-of-retail-cbdc-pilot-rollout\/articleshow\/95598347.cms?from=mdr<\/a><\/p>\n\n\n\nRead also:\u00a0IBIT investors are losing money<\/a><\/h3>\n\n\n\n
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