The sources are that the BRICS countries are considering connecting their formal digital currencies to help cross-border payments to facilitate easier trade and tourism, which might over time minimize reliance on the US dollar as geopolitical tensions escalate.
The RBI has advised the Indian government to include the proposal on the list of the BRICS Summit 2026 that India will be hosting later this year. Upon its acceptance, it would become the first official proceeding to tie the central bank digital currencies (CBDCs) of BRICS member states. According to the sources, who refused to be identified, the concept is geared towards the enhancement of efficiency, reduction in transaction costs, and enhancement of financial cooperation between the members of the bloc.
To date, the RBI, the Indian government and the central banks of Brazil and Russia did not comment on the requests. The central bank of China, the Peoples Bank of China, responded that it did not have any information to give out and South Africa central bank could not comment.
The United States would also be concerned by the proposed move as it has made several warnings against those seeking to work around the dollar in international trade. US President Donald Trump has already called the BRICS grouping as anti-American and has threatened to impose tariffs on the members of the grouping should such options harm the supremacy of the dollar.
The proposal of the RBI is based on the statement of the BRICS Summit of 2025 held at Rio de Janeiro, where member countries pledged to achieve interoperability of payment systems to enhance the cross-border transactions. The e-rupee released by India in December 2022 already has approximately 70 lakh retail users. Meanwhile, China has also indicated its desire to increase the global adoption of the digital yuan.
The RBI has made offline payments and programmability of government transfer, and participation of fintech firms in digital currency wallets, to increase the adoption.
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