India Proposes Linking BRICS Digital Currencies to Reduce Dollar Dependence

Source: Times Now | Original Published At: 2026-01-19 08:07:54 UTC

Key Points

• India's RBI proposes linking BRICS central bank digital currencies (CBDCs) for cross-border trade and tourism payments.
• The initiative would be discussed at the 2026 BRICS summit hosted by India, marking the first formal attempt at CBDC interoperability within the bloc.
• The proposal builds on 2025 BRICS summit declarations about payment system interoperability to make transactions faster and cheaper.
• Key challenges include agreeing on technology standards, governance frameworks, and managing trade imbalances between members.
• While India emphasizes this isn't explicitly for de-dollarization, the move could reduce reliance on the US dollar amid geopolitical tensions.