RBI Proposes Linking BRICS Digital Currencies

Source: Moneycontrol | Original Published At: 2026-01-19 09:14:45 UTC

Key Points

• India's RBI proposed linking BRICS central bank digital currencies (CBDCs) for cross-border transactions ahead of the 2026 summit.
• The initiative aims to enhance trade and tourism payments while reducing reliance on the U.S. dollar amid geopolitical tensions.
• Technical challenges include achieving interoperability, governance frameworks, and managing trade imbalances through mechanisms like swap arrangements.
• All five core BRICS members are conducting CBDC pilot projects, though full implementation remains pending.
• The proposal builds on the 2025 BRICS Rio declaration promoting payment system interoperability.