Key Insights
- India plans to enhance CBDC connectivity during the 2026 BRICS summit to enable cross-border payments.
- Every BRICS member is conducting pilots of digital currency, but none have been fully launched.
- The standards for governance, technology, and settlement balance are not being met.
BRICS CBDC connectivity has emerged as a formal policy proposal under consideration following the recommendation of India’s central bank to place the issue on the agenda for the 2026 BRICS summit, which India is scheduled to host.
Background from the 2025 BRICS Declaration
According to a Reuters report, the Reserve Bank of India (RBI) has advised the Indian government to propose linking the official digital currencies of BRICS member states, with the stated aim of simplifying cross-border trade and tourism payments.
The BRICS grouping includes Brazil, Russia, India, China, and South Africa, as well as newer members.
If approved by New Delhi, the proposal would be presented at a BRICS summit for the first time as a coordinated plan focused specifically on central bank digital currency (CBDC) interoperability.
Source: RKMtimes(X)
The RBI’s recommendation builds directly on commitments outlined in the 2025 BRICS summit declaration issued in Rio de Janeiro. That document called for increased interoperability among member states’ payment systems to improve the efficiency of cross-border transactions.
Since then, the RBI has publicly stated its interest in linking India’s digital rupee with other countries’ CBDCs. The central bank stated that such linkages could reduce transaction times and costs for international payments and support broader use of the rupee in cross-border settlements.
Moreover, the RBI has also clarified that its efforts to expand the global use of the rupee are not aimed at promoting de-dollarisation.
Status of Digital Currency Pilots
BRICS CBDC connectivity discussions are taking place against the backdrop of ongoing digital currency pilot programs across all five core BRICS members.
In December 2022, the e-rupee was introduced in a pilot phase in India, making it the country’s first digital currency. It has since gained about 7 million retail users, as cited by the RBI.
The central bank has incited it by facilitating its adoption through offline settlements, making government subsidy payments programmable, and permitting fintech companies to provide e-rupee wallets.
Additionally, China has expanded pilot programs for the digital yuan and stated its intention to increase the currency’s international use. Similarly, Brazil, Russia, and South Africa are also operating pilot programs in domestic payments and in small cross-border use cases.
Technical and Governance Issues
The report noted that deliberations would focus on interoperable technology standards, governance structures, and mechanisms to prevent trade imbalances between member states.
One issue the sources mention is the BRICS members’ unwillingness to use technological platforms developed in other states. Regulatory variations, data governance requirements, and cybersecurity may complicate the development of a shared system.
The arrangement for the settlement of disproportionate trade flows is also being discussed. The bilateral foreign exchange swap arrangement between central banks is one of the options under consideration. Such arrangements would enable countries to address liquidity mismatches arising from cross-border CBDC transactions.
Experience of Past Local Currency Trade Attempts
The current proposal builds on past efforts by BRICS members to expand trade via local currencies. India and Russia, among others, sought to expand bilateral trade to be settled in their respective currencies.
The same attempt encountered problems, as the Russians stockpiled huge amounts of Indian rupees that could not be utilized domestically. To counter this, the RBI allowed such balances to be invested in Indian government bonds, thereby allowing excess rupee holdings to be invested.
Additionally, people with knowledge of the ongoing deliberations claimed that these experiences are guiding suggestions of CBDC-based settlements, such as settlement cycles, whether weekly or monthly, carried out on central bank swap lines.
Geopolitical Environment and Foreign Response.
Proposals for BRICS CBDC connectivity are being made amid growing geopolitical concerns. United States President Donald Trump has previously described the BRICS bloc as “anti-American” and threatened tariffs on its members.
While the RBI has emphasized that its initiatives are not intended to undermine the U.S. dollar, the development of alternative payment infrastructure has drawn attention in Washington.
