What is the Reserve Bank of India's proposal for BRICS?

The RBI proposed linking BRICS countries' central bank digital currencies to ease cross-border trade and tourism payments.

When will the BRICS digital currency proposal be discussed?

The proposal is set to be discussed at the 2026 BRICS summit, which India will host.

Why are BRICS countries considering linking their digital currencies?

The initiative aims to reduce reliance on the U.S. dollar for international transactions and improve payment efficiency among member states.

Home / Business and Economy / India Proposes BRICS Digital Currency Alliance

India Proposes BRICS Digital Currency Alliance

19 Jan

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Summary

RBI suggests linking BRICS digital currencies for trade and tourism.
Proposal aims to reduce global reliance on the U.S. dollar.
India will host the 2026 BRICS summit to discuss the initiative.

India Proposes BRICS Digital Currency Alliance

The Reserve Bank of India has put forth a proposal for BRICS countries to link their central bank digital currencies (CBDCs). This move aims to simplify cross-border trade and tourism payments, potentially lessening the global dominance of the U.S. dollar amid rising geopolitical tensions. India is set to host the 2026 BRICS summit, where this groundbreaking proposal, if accepted, will be formally presented for the first time.

This initiative follows a 2025 declaration from a BRICS summit in Rio de Janeiro, which emphasized the need for interoperable payment systems among member states to enhance transaction efficiency. While none of the BRICS members have fully launched their CBDCs, pilot projects are underway in all five main nations, including India's e-rupee and China's digital yuan, both showing user adoption.

Successful implementation of linked BRICS digital currencies would necessitate discussions on interoperable technology, governance frameworks, and mechanisms for settling trade imbalances, possibly through bilateral foreign exchange swap arrangements. Challenges such as member nations' hesitance to adopt foreign technology platforms could influence the timeline for concrete progress, requiring consensus on technological and regulatory aspects.