RBI Proposes Linking BRICS Digital Currencies at 2026 Summit to Ease Cross-Border Payments

Source: Firstpost | Original Published At: 2026-01-19 13:41:05 UTC

Key Points

• RBI proposed connecting BRICS nations' central bank digital currencies (CBDCs) to streamline cross-border payments for trade and tourism.
• The proposal will be discussed at the 2026 BRICS summit hosted by India, building on the 2025 Rio de Janeiro declaration on payment system interoperability.
• Interlinked CBDCs could reduce reliance on the US dollar amid geopolitical tensions, with pilot programs already underway in all core BRICS economies.
• A shared framework for technology, governance, and trade imbalance settlement is critical for success, with potential mechanisms including bilateral forex swap lines.
• The initiative faces challenges including technological disagreements and US scrutiny, while stablecoins present competing alternatives to CBDCs.