India’s central bank has suggested connecting the digital currency systems of BRICS nations, aiming to streamline cross-border transactions and enhance economic resilience amid dollar reliance and US sanctions.
India’s central bank has proposed linking the digital currency systems of BRICS members in a move that could reshape how the bloc settles trade and tourism payments, according to reports from several outlets citing people familiar with the discussions. The Reserve Bank of India is understood to have recommended that the plan be placed on the agenda for the next BRICS summit, reflecting New Delhi’s push to make cross-border payments less dependent on the dollar-dominated financial system.
The proposal would connect central bank digital currencies, or CBDCs, allowing member states to transfer value more directly between their own official digital money systems. That would build on a 2025 BRICS declaration calling for greater interoperability between national payment networks, with the aim of making cross-border transactions quicker and cheaper, according to reporting by Economic Times and other outlets.
The idea has gained traction because BRICS economies remain heavily exposed to dollar-based energy trade and US financial infrastructure. An article cited by IOL in South Africa said that when tensions in the Middle East drive up oil prices, the effects are felt across the group through capital outflows, currency weakness and higher import bills. Russia, which faces sanctions, is cut off from SWIFT, while China, Brazil, South Africa, Egypt and Ethiopia all contend with the strain of dollar shortages and exchange-rate volatility.
Supporters of the proposal argue that a digital link between BRICS currencies could improve trade settlement and make tourism payments easier, while also giving the bloc more room to reduce reliance on the dollar. Times of India reported that India’s e-rupee has already attracted about 7 million retail users since its launch in December 2022, suggesting there is some domestic experience to build on if the idea advances. Still, the plan remains at an early stage, and any wider rollout would require technical coordination and political agreement among a diverse group of economies with very different financial systems.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
