TL;DR
- India is promoting a plan to connect BRICS digital currencies into a unified settlement network aimed at improving cross-border trade and travel payments.
- The proposal builds on existing CBDC pilots, including India’s e-rupee and China’s e-CNY, and seeks to reduce dependence on dollar-based rails.
- If discussed at the 2026 BRICS summit, the initiative could speed up settlements and lower transaction costs across member economies.
India Pushes to link BRICS digital currencies to supercharge cross-border payments as New Delhi advances a coordinated approach to sovereign digital money. The Reserve Bank of India has taken a central role in shaping discussions around interoperability, positioning CBDCs as practical tools for international commerce rather than isolated domestic experiments.
The initiative reflects a broader shift among emerging economies toward digital settlement infrastructure that operates beyond traditional correspondent banking. By focusing on direct currency-to-currency settlement, BRICS members aim to simplify payments tied to goods, services, and tourism while maintaining regulatory oversight.
India Pushes To Link BRICS Digital Currencies Into A Common Framework
Officials close to the process indicate that the RBI has recommended placing the proposal on the formal agenda of the 2026 BRICS summit, which India is set to host. The concept centers on enabling participating central banks to connect their digital currencies through agreed technical standards, allowing near-instant settlement in local units.
This direction mirrors findings from international experiments such as the BIS-led mBridge project, which demonstrated that multi-CBDC platforms can cut settlement times from several days to minutes. For exporters and importers within BRICS, faster settlement reduces counterparty risk and frees up working capital, an advantage especially relevant for small and mid-sized firms.
Lowering Dollar Reliance And Strengthening Digital Payment Rails
A key driver behind the proposal is the desire to limit exposure to dollar-centric systems. Direct CBDC settlement bypasses multiple intermediaries, reducing fees and operational complexity while giving member states greater control over compliance, transparency, and monetary transmission.
CBDC development across BRICS is uneven but advanced. India reports about 7 million retail users of the e-rupee, while China continues to test cross-border applications of the digital yuan with regional partners. Brazil, Russia, and South Africa are running mature pilot programs that already support programmable payments and tokenized settlement.
India’s push highlights how digital currencies are moving from pilot projects into real policy coordination. If BRICS members align on standards and governance, a shared CBDC settlement layer could reinforce crypto-based infrastructure as a credible alternative for cross-border payments in a more multipolar financial system.
