India's central bank, the Reserve Bank of India (RBI), has reportedly proposed an initiative linking BRICS central bank digital currencies (CBDCs) to facilitate cross-border trade and tourism payments.
A Reuters report, citing two anonymous sources, claimed that the recommendation would place the idea of CBDC interoperability on the agenda for the 2026 BRICS summit, which India is scheduled to host.
If accepted by the Indian government and BRICS partners, the proposal would be the first formal consideration of CBDCs within the bloc, which includes Brazil, Russia, India, China, and South Africa.
While the proposal aims to reduce friction and cost in cross-border payments, the sources told Reuters that the discussions are at an early stage and would depend on agreements on technology, governance, and settlement arrangements.
RBI Proposal Builds on Earlier BRICS Payment Talks
Linking CBDCs among BRICS nations would mark a substantial step in the evolution of sovereign digital assets, even if it stops short of creating a unified currency.
The 2025 BRICS summit in Brazil set the stage for enhanced payment interoperability, reflecting the members' interest in streamlining settlement systems for trade and tourism.
For India, the proposal aligns with its broader push to integrate its digital currency, the e-rupee, into international transaction flows.
The e-rupee has attracted millions of users since launch, and the RBI publicly signaled interest in linking the e-rupee with other CBDCs to expedite settlement.
While the RBI stressed that its efforts are primarily focused on efficiency and adoption rather than explicit de-dollarization, the move reflects growing interest among emerging economies in settlement efficiency.
BRICS Not Seeking a US Dollar Alternative
Officials from BRICS member states have repeatedly pushed back against claims that the bloc is attempting to replace the US dollar or launch a rival reserve currency.
In January 2025, Russia responded to US President Donald Trump’s tariff threats by asserting that BRICS was not seeking a dollar alternative and was not planning a common currency. Kremlin spokesperson Dmitry Peskov said at the time that cooperation within BRICS was focused on mutual investment and economic coordination.
That position has been echoed by Brazil, which has been central to past speculation around a potential “BRICS currency.” On May 19, Brazil’s central bank downplayed the idea that BRICS could create assets that would rival US dollar dominance.