India’s central bank, the Reserve Bank of India (RBI), has put forward a plan to create linkages between the central bank digital currencies (CBDCs) of BRICS member states, Brazil, Russia, India, China and South Africa, in a move intended to streamline cross-border trade and tourism payments and reduce reliance on the U.S. dollar amid rising geopolitical tensions.
According to multiple reports citing officials familiar with the discussions, the RBI has recommended that the proposal be placed on the agenda for the 2026 BRICS Summit, which India will host later this year. If adopted by member nations, it would mark the first formal attempt to link the digital currencies of BRICS economies, expanding on a 2025 declaration in Rio de Janeiro that emphasised greater interoperability between payment systems to improve cross-border transaction efficiency.
Under the proposal, each BRICS country would work toward interoperable CBDC infrastructure that allows digital currency transactions to flow more smoothly across borders. The idea is to create direct rails for trade and tourism payments using national CBDCs rather than traditional correspondent banking channels that typically rely on the U.S. dollar as a settlement currency. Proponents argue this could lower transaction costs and processing times between BRICS economies and support deeper economic integration within the bloc.
The RBI has already been actively promoting its own digital currency, the e-rupee, introduced in December 2022. Since its launch, the e-rupee has attracted around 7 million retail users and expanded features such as offline payments, programmable government transfers, and fintech wallet integration to boost adoption. Officials see linking the e-rupee with other BRICS CBDCs as a step toward enhancing the currency’s international utility, though the RBI has stressed that the initiative is not aimed at promoting outright “de-dollarisation.”
Despite these ambitions, several challenges remain. None of the BRICS members have fully launched a retail CBDC yet; all five core members are currently running pilot programs with their respective digital currencies. Establishing a linked digital-currency network would require agreement on interoperable technologies, governance frameworks and mechanisms to address potential trade imbalances between nations, including discussions around bilateral currency swaps and settlement arrangements.
The proposal has drawn attention beyond financial circles because it touches on broader geopolitical dynamics, especially at a time of heightened tensions involving global trade and U.S. policy. The United States has previously criticised moves by BRICS countries that could circumvent dollar-based systems, with President Donald Trump characterising the bloc’s initiatives as “anti-American” and threatening tariffs. While RBI officials assert that the linked CBDC project is designed to improve payments efficiency, it is likely to be scrutinised by policymakers in Washington and beyond.
Observers say the RBI’s proposal reflects a growing interest among major emerging-market economies in digital financial infrastructure that enhances autonomy and connectivity in global trade. Whether the digital-currency linkage gains traction at the 2026 BRICS summit will depend on the willingness of member states to collaborate on technological standards and regulatory frameworks in an area that remains nascent and complex.
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