The Reserve Bank of India (RBI) has proposed linking Central Bank Digital Currencies (CBDCs) of BRICS countries at the 2026 BRICS summit, chaired by India. This move is aimed at improving international payments by ensuring interoperability among digital currencies. BRICS, comprising Brazil, Russia, India, China, and South Africa, along with recent additions like Iran and Ethiopia, has become influential in financial governance in the Global South.
The RBI’s proposal emphasizes connecting the Digital Rupee (e-₹) with CBDCs of other member nations. Rather than introducing a common supernational currency, this approach focuses on linking existing national digital currencies like India’s e-Rupee and Brazil’s Drex. The goal is to facilitate quicker and seamless cross-border payments for trade and tourism, reducing reliance on traditional systems like SWIFT.
In a bid to reduce dependence on the US dollar and mitigate risks associated with sanctions and SWIFT, BRICS members are exploring the use of digital currencies for direct settlements. This initiative aims to enable traders to transact using their respective CBDCs, eliminating the need for intermediary currencies like the dollar. By promoting monetary sovereignty and enhancing transaction speed, this system also bolsters domestic financial systems by boosting demand for national currencies in international trade.
Following the BRICS 2025 summit, which advocated for an interconnected payment system to streamline trade, the proposal seeks to integrate technology standards for secure communication among different CBDCs. India and the UAE have already initiated collaboration by signing an agreement to link their CBDCs and conduct joint pilot programs. The growing interest in digital currencies is evident with India’s e-rupee gaining popularity among retail users and China’s efforts to expand the global use of its digital yuan.
