RBI Proposes Linking BRICS Digital Currencies to Reduce Dollar Reliance

Source: The Hindu | Original Published At: 2026-01-19 13:53:40 UTC

Key Points

• RBI proposes linking BRICS central bank digital currencies (CBDCs) to facilitate cross-border trade and tourism payments.
• The initiative aims to reduce reliance on the U.S. dollar amid rising geopolitical tensions.
• The proposal would be considered for the 2026 BRICS summit agenda hosted by India.
• Technical interoperability, governance rules, and trade imbalance settlements would require member consensus.
• Previous BRICS efforts to promote local currency trade faced challenges with currency utilization and settlement mechanisms.