RBI Proposes Linking BRICS Digital Currencies to Ease Trade and Reduce Dollar Reliance

Source: Firstpost | Original Published At: 2026-01-19 13:13:30 UTC

Key Points

• RBI proposes connecting BRICS central bank digital currencies (CBDCs) to facilitate cross-border trade and tourism payments.
• The initiative aims to reduce dependence on the U.S. dollar during heightened geopolitical tensions and potential trade frictions.
• Proposal targets inclusion in the 2026 BRICS summit agenda hosted by India, marking the first formal push for CBDC integration within the bloc.
• Technical challenges include governance frameworks, trade imbalance management, and compatibility between pilot projects from all BRICS members.
• India's e-rupee has 7 million retail users, while China actively promotes its digital yuan internationally.