India’s central bank proposes linking BRICS’ digital currencies

Source: The Economic Times | Original Published At: 2026-01-19 11:00:27 UTC

Key Points

• India's RBI has proposed linking BRICS members' central bank digital currencies (CBDCs) for cross-border trade and tourism payments.
• The proposal aims to implement a 2025 BRICS summit declaration on payment system interoperability and will be discussed at the 2026 summit hosted by India.
• The initiative seeks to reduce reliance on the U.S. dollar amid rising geopolitical tensions.
• All five main BRICS members are conducting CBDC pilot projects, though full implementation faces technical and regulatory challenges.
• Potential solutions for trade imbalances include bilateral foreign exchange swap arrangements between central banks.