India Proposes Linking BRICS CBDCs for Trade

India's central bank has proposed linking the official digital currencies of BRICS nations to streamline cross-border trade and tourism payments, a move that could lessen dependence on the U.S. dollar amid escalating geopolitical strains. The Reserve Bank of India recommended to the government that this initiative be added to the agenda for the 2026 BRICS summit, which India will host later this year, according to two sources familiar with the matter who spoke on condition of anonymity as they were not authorized to discuss it publicly.

If approved, the proposal would mark the first formal discussion of connecting central bank digital currencies, or CBDCs, among BRICS members. The group, originally founded in 2009 by Brazil, Russia, India, and China and later expanded to include South Africa, has grown further with recent additions such as the United Arab Emirates, Iran, and Indonesia. The idea aims to enhance efficiency in international transactions by fostering interoperability between payment systems, building directly on a declaration from the 2025 BRICS summit in Rio de Janeiro that called for better integration to reduce costs and delays.