China’s Digital Yuan Incentives Align with BRICS De-dollarisation Strategy

Source: Livemint | Original Published At: 2026-01-03 08:17:45 UTC

Key Points

• China's digital yuan (e-CNY) will offer interest incentives starting 2026 to promote its use as a settlement currency
• BRICS nations now hold over 6,000 tonnes of gold reserves, with China and Russia each exceeding 2,000 tonnes
• Analysts suggest the move could catalyze broader CBDC adoption while maintaining capital controls
• Post-Russia-Ukraine war sanctions have accelerated BRICS' shift toward local-currency trade settlements
• Challenges remain due to USD's current dominance in 80% of global trade invoicing