India Proposes BRICS CBDC Link-Up to Streamline Cross-Border Payments

TLDR

• The Reserve Bank of India has proposed linking BRICS central bank digital currencies to improve cross-border payments.
• The RBI wants this proposal included in the agenda of the 2026 BRICS summit which India will host.
• India aims to improve trade and tourism payments without relying heavily on the US dollar.
• The proposal builds on the 2025 BRICS declaration that supported payment system interoperability.
• India’s digital rupee pilot has reached seven million users since its launch in December 2022.

India’s central bank has proposed that BRICS members link their central bank digital currencies (CBDCs) to streamline cross-border payments. This recommendation comes as geopolitical tensions rise, with more countries seeking alternatives to the US dollar in trade and tourism. The Reserve Bank of India (RBI) wants the proposal discussed at the 2026 BRICS summit, where India will play a pivotal role.

India’s Proposal for CBDC Connectivity in BRICS

The Reserve Bank of India has recommended the idea of connecting BRICS members’ CBDCs to improve payment systems. If approved, this would be a formal proposal at the BRICS summit in 2026. India has already expressed interest in linking the digital rupee with other CBDCs to boost global transactions.

The proposal builds upon the 2025 BRICS declaration, which supported greater interoperability between member nations’ payment systems. By connecting their CBDCs, these nations aim to make cross-border payments faster and more efficient. This shift could challenge the dominance of the US dollar in international trade and currency exchanges.

Technical and Geopolitical Challenges

Although the proposal is appealing, there are several challenges to address. For one, none of the BRICS countries have fully launched their CBDCs, with most still in pilot stages. India’s digital rupee pilot has reached over 7 million retail users since December 2022, but other nations are in varying stages of development.

BRICS members will also need to establish shared technical standards and governance frameworks to make the plan work. One of the hurdles will be settling trade imbalances between countries. Russia and India previously faced difficulties in expanding local-currency trade due to unbalanced currency reserves. These issues could complicate any potential CBDC-linked transactions in the future.

Broader Implications for Global Payment Systems

The RBI’s push to link BRICS CBDCs is seen as a strategy to challenge the global financial order dominated by the US dollar. While the RBI insists that the goal is not to undermine the dollar, the move could expand the reach of the Indian rupee. This expansion aligns with India’s long-standing push to increase the rupee’s global usage.

However, these efforts may draw scrutiny from the United States. President Donald Trump has previously criticized the BRICS bloc as “anti-American” and threatened tariffs. Despite these tensions, the proposal continues to gain traction, as more countries look for ways to reduce reliance on the US dollar in international trade.

The post India Proposes BRICS CBDC Link-Up to Streamline Cross-Border Payments appeared first on CoinCentral.