RBI Proposes Linking BRICS Digital Currencies to Ease Trade and Tourism Payments

Source: India Today | Original Published At: 2026-01-19 11:16:50 UTC

Key Points

• India's RBI has proposed linking BRICS members' central bank digital currencies (CBDCs) to streamline trade and tourism payments.
• The initiative aims to reduce reliance on the US dollar amid geopolitical tensions, with potential implications for global financial systems.
• The proposal will be considered for the 2026 BRICS summit agenda, marking the first formal attempt at CBDC interoperability within the bloc.
• All five original BRICS economies (Brazil, Russia, India, China, South Africa) and newer members like UAE, Iran, and Indonesia are running CBDC pilots.
• Technical challenges include establishing a shared framework for technology, governance, and settlement of trade imbalances.
• The proposal faces potential scrutiny from the US, with Trump previously labeling BRICS 'anti-American' and threatening tariffs.
• Bilateral foreign exchange swap lines are being explored as a mechanism to manage cross-border transaction imbalances.