RBI Proposes Linking BRICS Digital Currencies to Enable Faster Cross-Border Payments

India’s central bank, the Reserve Bank of India, has proposed exploring the interoperability of digital currencies among BRICS nations, marking a significant step toward reshaping cross-border payments within the bloc.

The proposal aims to connect central bank digital currency (CBDC) systems across BRICS countries to make international trade settlements & travel-related payments faster, cheaper, & more efficient. If advanced, the framework could reduce transaction frictions that currently arise from correspondent banking, currency conversions, & settlement delays.

• Focus on Trade & Travel
• Reducing Reliance on the U.S. Dollar
• Expected Discussion at the 2026 BRICS Summit
• What Happens Next

Focus on Trade & Travel

Linking digital currencies would allow businesses & individuals to transact directly in sovereign digital money issued by their respective central banks. This could significantly lower fees for exporters, importers, & travelers while improving settlement speed compared to existing cross-border payment rails.

For trade-heavy BRICS economies, such a system could streamline invoicing, reduce dependency on intermediary banks, & enhance transparency in cross-border flows. In the travel context, interoperable CBDCs could simplify spending abroad without reliance on international card networks or high foreign exchange markups.

Reducing Reliance on the U.S. Dollar

A major strategic motivation is to reduce dependence on the U.S. dollar for settlements within BRICS. Large parts of global trade still route through dollar based rails, which can expose participants to FX volatility & broader external monetary policy shocks.

Direct digital currency settlement between member nations could support a gradual shift toward local currency denominated trade within the bloc.

Expected Discussion at the 2026 BRICS Summit

The proposal is expected to be discussed at the 2026 BRICS Summit, which will be hosted by India. While still at an exploratory stage, any consensus emerging from the summit could lead to pilot programs or technical working groups focused on CBDC interoperability standards.

India has already been actively testing its own digital rupee through retail & wholesale pilots. A BRICS-level initiative could position the country as a key architect of next-generation cross-border payment infrastructure among emerging economies.

What Happens Next

Even if BRICS leaders signal interest, implementation would likely require:

• Shared technical standards for CBDC interoperability
• Alignment on compliance, privacy, & governance
• Strong cybersecurity frameworks
• Clear rules on settlement finality & dispute handling

Experts note that while the proposal signals ambition, implementation would require significant coordination on technology, regulation, cybersecurity, & monetary policy safeguards. Interoperable CBDCs would need common standards while preserving each nation’s monetary sovereignty.

Still, the RBI’s move highlights a growing momentum among BRICS nations to rethink global payment systems & experiment with digital public infrastructure as an alternative to legacy financial rails.