India Pushes for BRICS Digital Currency Link to Boost Trade and Tourism
India’s central bank has proposed that BRICS nations connect their official digital currencies to simplify cross-border trade and tourism payments, according to two sources familiar with the matter. The move could ease dependence on the U.S. dollar at a time of growing geopolitical tensions.
Proposal for BRICS 2026 Summit
The Reserve Bank of India (RBI) has recommended that the government include the plan to link central bank digital currencies (CBDCs) on the agenda for the upcoming 2026 BRICS summit, which India will host later this year. If approved, this would mark the first formal attempt to interconnect the CBDCs of BRICS members—Brazil, Russia, India, China and South Africa—along with newly joined nations such as the United Arab Emirates, Iran and Indonesia.
The initiative may provoke a sharp response from Washington. U.S. President Donald Trump has previously described the BRICS bloc as “anti-American” and threatened tariffs on its members. The RBI and central banks of other BRICS members declined to comment on the proposal.
Building on Earlier Cooperation
The new proposal builds upon the 2025 BRICS declaration in Rio de Janeiro, which advocated greater interoperability among members’ payment systems. The RBI has long expressed interest in linking India’s e-rupee with other countries’ digital currencies to streamline trade settlements and enhance the rupee’s international role. The central bank maintains, however, that these efforts are not aimed at de-dollarisation.
All five core BRICS members are at varying stages of developing their own CBDCs. India’s e-rupee, launched in December 2022, already counts seven million retail users. China has pledged to expand the international use of its digital yuan, while Brazil, Russia and South Africa are running pilot programmes.
To encourage adoption, the RBI has enabled offline e-rupee payments, programmable transfers for government subsidies, and partnerships with fintech firms to provide digital currency wallets.
Technical and Regulatory Challenges
For the proposed digital currency linkages to succeed, BRICS members will need to establish shared technology frameworks, governance mechanisms and methods for balancing trade volumes, one source said. However, concerns over adopting another nation’s technological infrastructure could delay implementation.
To manage potential trade imbalances, the countries are exploring bilateral foreign exchange swap arrangements between central banks, allowing for weekly or monthly settlements. A previous attempt by Russia and India to trade in local currencies faced difficulties, leaving Moscow with large rupee balances that had limited usability.
Strategic and Economic Implications
Founded in 2009 by Brazil, Russia, India and China, and later joined by South Africa, the BRICS alliance has re-emerged as a focal point amid renewed trade tensions and tariff threats from the United States. India’s closer alignment with Russia and China, alongside friction with Washington, adds further weight to its digital currency initiative.
Past ambitions for a common BRICS currency failed to materialise, but the push to link CBDCs could serve as a more practical step toward regional financial autonomy. Despite global interest in CBDCs cooling as stablecoins gain traction, India continues to back its e-rupee as a safer, regulated alternative.
RBI Deputy Governor T. Rabi Sankar recently warned that stablecoins could threaten monetary stability and fragment national payment systems. “Beyond facilitating illicit payments, stablecoins raise significant concerns for monetary and fiscal policy, banking intermediation and systemic resilience,” he said.
As the 2026 BRICS summit approaches, India’s proposal signals a renewed push for financial innovation and strategic cooperation within the bloc—potentially reshaping the architecture of global payments.
with inputs from Reuters