New Delhi — The Reserve Bank of India (RBI) has proposed putting the integration of Central Bank Digital Currencies (CBDCs) among BRICS nations on the agenda for the 2026 summit, a move that could significantly streamline cross-border payments.
The BRICS bloc—comprising Brazil, Russia, India, China, and South Africa—has expanded in recent years to include Iran, Ethiopia, United Arab Emirates, Egypt, and Indonesia, strengthening its influence in shaping financial systems across the Global South.
Rather than pushing for a single shared currency, the RBI’s approach focuses on interoperability—linking national digital currencies like India’s e-rupee and Brazil’s Drex. This would allow direct transactions between countries without relying on intermediary systems such as SWIFT.
The goal is to make international payments faster, cheaper, and more efficient for trade, tourism, and financial transactions, while preserving each country’s monetary sovereignty. A key motivation behind the proposal is also to reduce reliance on the US dollar, which has long dominated global trade and reserves.
By enabling direct settlement between CBDCs, businesses could avoid costly currency conversions. For example, an Indian trader could pay a Brazilian supplier using their respective digital currencies, eliminating the need for a third currency as a bridge. This could lower transaction costs and speed up settlements.
The idea builds on discussions from the BRICS 2025 summit in Rio de Janeiro, where members supported developing interconnected payment systems. Such a framework could also help bring smaller and rural producers—especially from countries like India—into global markets through digital financial access.
The RBI has also highlighted the need for common technical standards, secure communication protocols, and governance frameworks to ensure smooth interoperability among CBDCs. Managing trade imbalances between currencies will be another key aspect.
India has already taken steps in this direction, including a pilot project with the United Arab Emirates to link digital currencies. Meanwhile, the growing adoption of India’s e-rupee and China’s efforts to expand the global use of its digital yuan underline increasing momentum within BRICS toward digital currency systems.
With inputs from IANS