The Reserve Bank of India has proposed an idea that could allow central bank digital currencies (CBDCs) issued by BRICS nations to work together for everyday international payments. This concept may be formally raised at the 2026 BRICS summit, which India is scheduled to host.
Key aspects of this exploration include:
- •India’s central bank is investigating methods to link BRICS digital currencies for cross-border payment facilitation.
- •The proposal could be a topic of discussion at the 2026 BRICS summit, though current discussions are in their initial stages.
- •The primary objective is to enhance payment efficiency and interoperability, rather than to create a new BRICS currency or challenge the dominance of the US dollar.
Addressing a Practical Payments Challenge, Not Creating a New Currency
This initiative is not focused on establishing a singular BRICS currency. Instead, its core aim is to achieve interoperability, enabling existing digital currencies to connect and facilitate more direct money transfers between member states for trade and tourism purposes.
Currently, cross-border transactions among BRICS nations largely depend on traditional correspondent banking networks. These networks are often characterized by slow processing times, high costs, and frequent reliance on third currencies for settlement. By linking CBDCs, the goal is to reduce settlement times and associated costs without fundamentally altering the global financial architecture.
If this proposal is adopted, it would represent the first formal exploration of CBDCs as a shared payment instrument by the BRICS group, even as several member countries are actively conducting advanced digital currency pilot programs domestically.
India's Digital Currency Ambitions
This proposed idea aligns well with India's broader digital finance strategy. The country's digital rupee, or e-rupee, has already been launched domestically and has garnered millions of users through pilot programs. The Reserve Bank of India has consistently indicated its intention to expand the reach of the digital rupee beyond national borders.
Integrating the e-rupee with other sovereign digital currencies would transform it from a purely domestic initiative into a component of a regional settlement network. This would be particularly beneficial for trade flows, given the established deep economic ties between BRICS countries.
Early and Complex Discussions
Despite the significant potential, the discussions surrounding this proposal are still in an exploratory phase. Any eventual agreement would necessitate extensive coordination on technological standards, governance frameworks, compliance regulations, and mechanisms for settling financial imbalances between participating countries. Even establishing basic transaction pathways across five distinct financial systems would present a considerable challenge.
This inherent complexity is one of the reasons why the idea has remained within internal policy discussions to date.
Not Aimed at Challenging the US Dollar
BRICS officials have consistently refuted claims that the bloc is seeking to diminish the role of the US dollar. This stance has been reiterated by representatives from countries like Russia and Brazil amidst ongoing speculation about alternative reserve currencies.
The CBDC interoperability proposal adheres to this same principle. It is presented as a measure to enhance efficiency and modernize payment systems, rather than as a strategy for de-dollarization. Nevertheless, facilitating direct settlement between major emerging economies could, over time, lead to a reduced reliance on intermediary currencies, even if this is not the explicitly stated objective.
An Indicator of Future Digital Money Trends
Should this proposal be included on the agenda for the 2026 summit, it would signify a notable shift in how central banks perceive digital currencies – moving them from being solely domestic payment tools to becoming integral parts of cross-border infrastructure.
Rather than introducing a novel currency, India appears to be pursuing a more incremental approach: enabling existing systems to communicate and interact. For the BRICS nations, this could represent a more pragmatic and achievable step toward transforming the way money flows between their economies.