India Pushes BRICS CBDC Links for Faster Cross-Border Payments

• RBI urges BRICS to link CBDCs to cut costs and speed up cross-border payments.
• U.S. opposition may rise as BRICS explores digital currencies beyond the dollar.
• Technology, governance, and trade imbalances remain major hurdles for adoption.

India’s central bank has urged the government to push a new BRICS payments plan that could reshape how member nations settle trade and tourism bills. According to sources, the Reserve Bank of India wants BRICS countries to connect their official digital currencies.

The plan would allow cross-border payments to move faster and cost less. It could also reduce the bloc’s reliance on the U.S. dollar during a period of rising geopolitical tension. India plans to host the 2026 BRICS summit later this year. If officials accept the recommendation, BRICS would discuss CBDC linkages for the first time on the summit agenda.

RBI Pushes a BRICS Digital Payments Link

The proposal follows a 2025 BRICS declaration in Rio de Janeiro that supported greater interoperability of payment systems. Additionally, the RBI has signaled interest in linking India’s digital rupee with other CBDCs. It sees faster settlement as a way to support trade flows. It also views the project as a path to wider rupee usage in global transactions.

However, the initiative may trigger political friction. The United States has warned against efforts to bypass the dollar. President Donald Trump has also described BRICS as hostile to American interests. He has threatened tariffs against members tied to such moves.

BRICS includes Brazil, Russia, India, China, and South Africa. Besides them, the bloc has expanded to include countries such as the UAE, Iran, and Indonesia. That expansion has increased the group’s influence. It has also increased the complexity of achieving policy alignment.

Technology, Governance, and Trade Imbalances Remain Key Hurdles

BRICS members still face a long checklist before launching any shared CBDC bridge. One source said the group would need common technology standards and clear governance rules. Consequently, slow consensus could delay progress.

Members may also resist using payment platforms linked to rivals. Hence, talks may focus on neutral technical frameworks and shared compliance controls. Regulators would also need aligned rules on identity checks and transaction monitoring.

Trade imbalances create another problem. Russia previously collected large rupee balances during local currency trade efforts. It struggled to spend those funds. India later allowed investment in local bonds to ease the issue. 

Moreover, sources said central banks may explore foreign exchange swap arrangements. Those swaps could support weekly or monthly settlement cycles.

India Positions CBDCs Against Stablecoin Risks

While BRICS pilots continue, no major member has fully launched a CBDC at scale. India’s e-rupee has drawn about 7 million retail users since December 2022. Significantly, the RBI has added offline payments and programmable tools. It has also allowed fintech firms to offer digital currency wallets.

At the same time, stablecoins have gained global traction. However, India continues to frame CBDCs as safer and more regulated. Indian officials worry stablecoins could weaken domestic payment systems. They also fear risks to monetary stability and banking activity.

Related: BRICS De-Dollarization Grows as Brazil Considers Chinese Yuan Bonds