RBI Proposes Linking BRICS Digital Currencies to Reduce Dollar Reliance

Source: The Economic Times | Original Published At: 2026-01-19 05:38:00 UTC

Key Points

• India's RBI proposed linking BRICS digital currencies to facilitate cross-border transactions and reduce reliance on the U.S. dollar.
• The initiative would be discussed at the 2026 BRICS summit hosted by India, building on 2025 interoperability declarations.
• All five original BRICS members (Brazil, Russia, India, China, South Africa) are running CBDC pilot projects but face technical and regulatory challenges.
• Potential solutions include bilateral forex swaps and settlement mechanisms to address trade imbalances between members.
• The proposal aligns with BRICS' broader economic cooperation goals but faces implementation hurdles due to differing technological platforms and governance frameworks.