RBI pushes plan to link BRICS' digital currency to ease trade, tourism payments: Report

The Reserve Bank of India is pushing a quiet but consequential idea within the BRICS bloc: linking official digital currencies to make cross-border trade and tourism payments cheaper, faster and less dependent on the US dollar, according to a Reuters report.

The central bank has proposed that BRICS countries connect their central bank digital currencies (CBDCs), according to two sources familiar with the matter. In its recommendation to the government, the RBI has requested that the proposal be placed on the agenda of the 2026 BRICS summit, which India is set to host later this year. According to Reuters, the sources requested anonymity as they were not authorised to speak publicly.

If accepted, the proposal would mark the first time BRICS formally considers linking members' digital currencies. This could streamline cross-border payments while signalling a shift away from the dollar amid rising geopolitical tensions.

The BRICS grouping includes Brazil, Russia, India, China and South Africa, and has expanded in recent years to bring in countries such as the United Arab Emirates, Iran and Indonesia. Any attempt to reduce reliance on the dollar, however, risks irritating Washington, which has warned against efforts to bypass the U.S. currency.

U.S. President Donald Trump has previously said the BRICS alliance is "anti-American" and has threatened to impose tariffs on its members.

Building bridges through digital money

The idea builds on a 2025 BRICS summit declaration in Rio de Janeiro that called for interoperability between members’ payment systems to make cross-border transactions more efficient.

The RBI has publicly expressed interest in linking India’s digital rupee with other nations’ CBDCs to speed up cross-border payments and expand the rupee’s global footprint. At the same time, it has maintained that these efforts are not aimed at promoting de-dollarisation.

None of the BRICS members has fully launched a retail CBDC, but all five core members are running pilot projects. India’s digital currency, the e-rupee, has attracted about 7 million retail users since its launch in December 2022, while China has pledged to boost the international use of the digital yuan.

The RBI has encouraged the adoption of the e-rupee by enabling offline payments, introducing programmability for government subsidy transfers, and allowing fintech firms to offer digital currency wallets.

(With inputs from Reuters)