India Proposes Linking BRICS Digital Currencies to Facilitate Trade and Tourism Payments

India’s central bank has proposed connecting the official digital currencies of BRICS nations to simplify cross-border trade and tourism payments, sources familiar with the matter said. The initiative, if approved, could reduce reliance on the US dollar amid rising geopolitical tensions.

The Reserve Bank of India (RBI) recommended that the proposal be included on the agenda for the 2026 BRICS summit, which India will host later this year. The BRICS group includes Brazil, Russia, India, China, and South Africa. The sources, who requested anonymity because they were not authorized to speak publicly, said this would be the first time a formal plan to link the central bank digital currencies (CBDCs) of BRICS members would be discussed.

The proposal could draw scrutiny from Washington, which has repeatedly cautioned against efforts to bypass the dollar. US President Donald Trump has previously described the BRICS alliance as “anti-American” and threatened tariffs on its members.

The plan builds on a 2025 BRICS declaration in Rio de Janeiro calling for greater interoperability between members’ payment systems to improve cross-border transactions. India has shown interest in linking its digital rupee with other countries’ CBDCs to speed up trade settlements and increase the global use of the e-rupee, while maintaining that its efforts are not intended to promote de-dollarization.

While none of the main BRICS members have fully launched digital currencies, all five have conducted pilot programs. India’s e-rupee, launched in December 2022, has reached 7 million retail users. China is actively promoting international use of its digital yuan. The RBI has encouraged adoption by enabling offline payments, programmable government subsidies, and digital wallets through fintech partners.

Sources said implementing the proposed link would require discussions on technical interoperability, governance frameworks, and ways to settle trade imbalances. One potential solution is using bilateral foreign exchange swap arrangements between central banks. Past efforts by India and Russia to trade in local currencies faced challenges, including limited usability of accumulated balances.

The proposal would see settlements potentially conducted weekly or monthly through such swaps, according to one source. India is seeking consensus among BRICS members on both technology platforms and regulatory standards to move the initiative forward.

Founded in 2009 and later expanded to include South Africa, BRICS has recently attracted renewed attention amid US trade tensions and India’s growing economic engagement with Russia and China. Earlier ambitions to create a common BRICS currency have faced obstacles, and global interest in central bank digital currencies has been tempered by the rise of stablecoins.

RBI Deputy Governor T Rabi Sankar said CBDCs present fewer risks compared with stablecoins, which can threaten monetary stability, fiscal policy, and the resilience of banking systems. India aims to safeguard its digital payments ecosystem while exploring ways to strengthen the e-rupee’s role internationally.