By Admin 
The Reserve Bank of India (RBI), India’s central bank, has proposed to link the official digital currencies of BRICS countries (Brazil, Russia, India, China, South Africa and other members). With this step, payments related to cross-border trade and tourism between these countries will become easier, faster and cheaper. Besides, it can also help in reducing dependence on the US dollar amid geopolitical tension.
Proposal to include it in the agenda of 2026 BRICS Summit
Two sources told Reuters that the RBI has recommended to the Indian government that this proposal be included in the agenda of the 2026 BRICS summit. India will host this summit this year. If this proposal is approved, then for the first time in BRICS the formal issue of linking digital currencies of member countries will arise.
What is the purpose of this proposal?
- To ease trade and tourism payments between BRICS countries.
- Completing transactions in less time and less expense than traditional payment systems.
- Less reliance on dollar-based systems (such as SWIFT) due to geopolitical tensions (such as increasing disputes with the US).
- This proposal is based on the manifesto of the BRICS Summit held in Rio de Janeiro in 2025, in which it was said to connect the payment systems of the member countries and improve cross-border transactions.
What is the status of digital currencies of BRICS countries?
- So far, no main member of BRICS has fully launched its digital currency, but all are running pilot projects.
- India’s e-rupee (digital rupee) was launched in December 2022. Till now it has about 70 lakh retail users.
- To promote e-rupee, RBI has started the facility of offline payments, programmable feature for government subsidies and providing digital wallet to fintech companies.
- China is promoting its digital yuan internationally.
What are the challenges in mixing currencies of all countries?
According to sources, member countries may hesitate in adopting technical platforms made by others. To be successful, it will be necessary to agree on interoperability of technology (ability to work continuously), rules of governance and how to handle trade imbalance. A source told Reuters that the option of a bilateral foreign currency swap arrangement between central banks is also being considered to manage the trade imbalance.
Trump had called BRICS anti-American
RBI has also earlier said that it is interested in linking India’s digital currency with CBDCs of other countries, so that international transactions can be faster and the global use of rupee increases. But RBI has clearly said that these efforts are not to remove the dollar. US President Donald Trump had earlier called BRICS ‘anti-American’ and threatened to impose tariffs on its members. However, this proposal can be a big step towards strengthening economic cooperation between BRICS countries. Right now it is in the initial stage and will move forward only after discussion in the 2026 summit.