India’s central bank has proposed linking BRICS digital currencies to simplify cross-border payments for trade and tourism. The RBI BRICS proposal, revealed by sources, aims for discussion at the 2026 summit hosted by India. This could reduce US dollar reliance amid rising geopolitical tensions.
The RBI BRICS proposal marks a step towards stronger economic ties among BRICS nations. In South Asia, where trade with China and Russia grows, linking BRICS CBDCs could lower transaction costs and boost remittances, vital for economies like India and Pakistan.
RBI BRICS Proposal Details
The Reserve Bank of India suggested connecting central bank digital currencies of Brazil, Russia, India, China, South Africa, and other BRICS members. Sources indicated the plan focuses on faster, cheaper payments without intermediaries.
India launched its digital rupee in December 2022. It now has 7 million retail users. China seeks wider use of its digital yuan abroad. The proposal builds on existing pilots.
Linking BRICS CBDCs for Efficiency
Linking BRICS CBDCs would enable real-time settlements. Current systems rely on SWIFT, often slow and costly. The RBI concept note from October 2022 highlights CBDCs’ potential for seamless cross-border integration.
Projects like m-CBDC Bridge, involving China, Hong Kong, UAE, and Thailand, show feasibility. Project Dunbar tests multi-CBDC settlements among Australia, Malaysia, Singapore, and South Africa.
In BRICS, this could handle growing trade volumes. India’s exports to BRICS hit $100 billion in 2025. Tourism payments would also benefit, with 10 million visitors among members annually.
BRICS De-Dollarization Context
BRICS de-dollarization efforts gain traction. The 2025 Rio declaration called for interoperable payment systems to enhance transactions. Paragraph 50 tasks finance ministers to advance the BRICS Cross-Border Payments Initiative.
Geopolitical shifts drive this. Sanctions on Russia increased local currency trades. India settled oil payments in rupees with Russia in 2025, totalling INR 500 billion.
However, RBI stresses the focus is efficiency, not de-dollarization. One source noted member reluctance to adopt foreign tech platforms, requiring consensus on standards.
Background on BRICS Digital Currencies
BRICS nations explore digital currencies separately. China’s e-CNY leads with $986 billion in transactions by June 2024. Russia’s digital ruble pilots wholesale use. Brazil tests Drex for asset tokenization.
India’s e-rupee reached INR 10.16 billion in circulation by March 2025, up 334% from prior year. RBI integrates it with UPI for interoperability.
South Asian implications are significant. Pakistan, not in BRICS but trading with members, could see indirect benefits through cheaper remittances from Gulf states.
Challenges in Linking BRICS CBDCs
Technical hurdles include differing blockchain standards. Regulatory alignment on anti-money laundering is needed. The 2025 declaration emphasizes non-politicized cooperation against illicit flows.
Currency volatility poses risks. The ruble fell 20% in 2025 due to sanctions. Consensus may delay rollout.
Despite challenges, the RBI BRICS proposal aligns with G20 priorities on cross-border payments. Costs for India remittances average 5%, above global targets.
What’s Next for BRICS Digital Currencies
The 2026 summit in India offers a platform. If approved, pilots could start in 2027. Success depends on tech agreements.
BRICS digital currencies linkage could reshape global finance, promoting multipolar systems.
Published in SouthAsianDesk, January 20th, 2026
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