RBI Proposes Linking BRICS Digital Currencies to Boost Cross-Border Payments

As per Reuters report, The Reserve Bank of India (RBI) has proposed a framework to connect the digital currencies of BRICS countries, focusing on improving cross-border transactions for trade and tourism.  

This proposal builds on the 2025 BRICS summit declaration to enhance payment system interoperability. 

Proposal to Link BRICS Digital Currencies Gains Ground 

The RBI has suggested a plan to integrate central bank digital currencies (CBDCs) among BRICS nations, including Brazil, Russia, India, China, and South Africa. The aim is to streamline cross-border payments, reduce dependence on the USD ($) and support trade in local currencies.  

The idea follows the 2025 BRICS summit in Rio de Janeiro, which encouraged developing interconnected payment systems. 

India's e-rupee, having engaged 70,00,000 retail users since its 2022 launch, and China’s intent to widen the global use of its digital yuan reflect growing momentum among BRICS members towards digital currency adoption. 

Interoperability, Governance and Balancing Trade 

One key challenge to the proposal is the reluctance of some member nations to adopt technology developed in another country. For the initiative to succeed, there must be agreement on the underlying technology, operational governance, and regulatory alignment.  

As per report, RBI is exploring use of bilateral foreign exchange swap arrangements between central banks to address trade imbalance concerns that might arise due to uneven CBDC flows. 

Read More: India’s Growth to Hold at 7% in FY27 Despite External Headwinds: CareEdge Ratings! 

India’s Preparations and Technological Development 

The RBI has introduced enhancements to boost adoption of the e-rupee, such as the offline payment feature, programmability for government transfers, and digital wallet integration via fintech companies. These updates intend to increase use within domestic markets and prepare infrastructure for international compatibility. 

India will be hosting the 2026 BRICS summit, and the RBI has suggested placing the digital currency linking proposal on the formal agenda. If agreed upon, this could set the groundwork for a new regional payment pathway among BRICS economies. 

Conclusion 

The proposal by the RBI to interlink BRICS digital currencies focuses on reducing $ reliance and smoothing cross-border payments. Addressing technological compatibility and regulatory alignment will be essential for progress on this recommendation. 

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