The Reserve Bank of India (RBI) has put forth a significant proposal to interconnect the central bank digital currencies (CBDCs) of all BRICS nations. The aim is to establish a shared system for facilitating cross-border trade and tourism through direct digital settlement, thereby reducing reliance on dollar-based systems.
According to a report by Reuters, the RBI has recommended that the Indian government formally place this CBDC interconnection initiative on the agenda for the 2026 BRICS summit. This proposed collaboration would represent the first concerted effort to link sovereign digital currencies, such as India's e-rupee and China's digital yuan, within a unified, multilateral framework.
Details of the RBI's Proposal
The core objective of this initiative is to diminish the dominance of the U.S. dollar in international settlements. By enabling direct payments using local CBDCs, BRICS member states could settle transactions related to trade and tourism without the need to route them through dollar-denominated correspondent banking systems. The RBI has indicated that such a system would enhance efficiency by removing intermediaries, shortening settlement times, and decreasing overall transaction costs.
This proposal emerges in the context of recent geopolitical tensions and trade disputes. RBI officials have pointed to recent tariff threats and criticism directed at BRICS, including remarks from former U.S. President Donald Trump who characterized the bloc as "anti-American." The central bank views the development of a shared CBDC infrastructure as a strategic move to bolster economic resilience, enabling member states to better insulate their trade flows from external political pressures.
The practical implementation of this plan hinges on achieving consensus among member countries regarding technical interoperability standards and governance rules. The complexity of these challenges has increased with the recent expansion of BRICS to include new members such as the UAE, Iran, and Indonesia.
One potential mechanism being considered involves the establishment of bilateral foreign-exchange swap lines between participating central banks. This would serve as a method to address potential trade imbalances. The RBI continues to highlight the e-rupee's role as a regulated digital currency designed to offer a secure alternative to private stablecoins, which the bank perceives as posing risks to monetary sovereignty and financial stability.
As of January 2026, India's e-rupee has garnered approximately 7 million retail users. China is actively promoting the international adoption of its digital yuan, while Brazil, Russia, and South Africa are all engaged in advanced pilot programs for their respective CBDCs.
If endorsed at the 2026 summit, the RBI's proposal could lay the groundwork for a BRICS-wide digital settlement layer. This development has the potential to significantly alter the landscape of cross-border trade and financial transactions for emerging economies.