MUMBAI: India central bank has proposed linking the official digital currencies of BRICS countries to facilitate cross-border trade and tourism payments, potentially reducing reliance on the US dollar amid rising geopolitical tensions. The recommendation was made by the Reserve Bank of India (RBI) to the government ahead of India hosting the 2026 BRICS summit.
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If approved, this would mark the first formal proposal to connect central bank digital currencies (CBDCs) of Brazil, Russia, India, China, and South Africa. Sources familiar with the matter, who requested anonymity, confirmed the initiative is under consideration but declined to provide further details.
NEW: 🇮🇳 India’s central bank has proposed linking BRICS’ official digital currencies to ease cross-border payments, sources tell Reuters.
🏦 The RBI recommended the move for the 2026 summit to reduce reliance on the U.S. dollar amid geopolitical tensions. pic.twitter.com/y4Lcw6l8xc
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The move could irritate the United States, which has previously warned against measures that bypass the dollar. President Donald Trump has labelled BRICS as “anti-American” and threatened tariffs on member nations in past disputes. Officials from the RBI, India’s central government, and Brazil’s central bank did not respond to requests for comment, while China, South Africa, and Russia declined to comment.
The RBI’s proposal builds on a 2025 BRICS summit declaration in Rio de Janeiro that promoted interoperability among members’ payment systems to streamline cross-border transactions. India has also expressed public interest in linking its digital rupee with other CBDCs to expedite international payments and increase the currency’s global footprint.
While the RBI emphasises that the initiative is aimed at easing trade and tourism flows rather than pursuing de-dollarisation, it could strengthen the rupee’s role in regional financial networks. Analysts say linking BRICS digital currencies may also provide an alternative settlement channel for member countries amid growing economic and political uncertainties globally.
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The proposal will likely feature on the BRICS summit agenda later this year, potentially setting a new framework for digital currency cooperation among emerging economies.