The BRICS digital currency link proposal from India’s Reserve Bank is aiming to connect central bank digital currencies of member nations to make cross-border trade and also tourism payments easier while reducing reliance on the US dollar. Right now, the Reserve Bank of India has recommended to the government that a proposal connecting the central bank digital currencies be included on the agenda for the 2026 BRICS summit, which India will be hosting later this year.
This initiative around BRICS CBDC interoperability builds on a 2025 declaration at a BRICS summit in Rio de Janeiro, which pushed for interoperability between members’ payment systems, and it represents the first formal attempt to link the digital currencies of Brazil, Russia, India, China, South Africa, and other members. The move signals accelerating momentum toward de-dollarization in 2026 as Global South trade growth continues to reshape international commerce patterns and countries develop cross-border digital payments infrastructure.
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How BRICS CBDC Interoperability Drives De-Dollarization And Trade Growth
RBI Framework Targets Summit Inclusion
The BRICS digital currency link represents what would be the first attempt to connect member CBDCs at the summit level, according to sources who requested anonymity because they lacked authorization to speak publicly. The timing here is particularly notable as US President Donald Trump has previously said the BRICS alliance is “anti-American” and he threatened to impose tariffs on its members.
For the BRICS digital currency linkages to succeed, members will need to discuss elements like interoperable technology, governance rules and ways to settle imbalanced trade volumes, one of the sources said. The technical framework that proponents propose needs these interoperable technology platforms, governance rules, and mechanisms to settle what could become imbalanced trade volumes between nations.
RBI Deputy Governor T Rabi Sankar said last month:
“Beyond the facilitation of illicit payments and circumvention of control measures, stablecoins raise significant concerns for monetary stability, fiscal policy, banking intermediation and systemic resilience.”
Past efforts by Russia and India to conduct more trade in their local currencies actually hit roadblocks. Russia ended up accumulating large balances of the Indian rupee for which it found limited use, which then prompted India’s central bank to permit the investment of such balances in local bonds. At the time of writing, bilateral foreign exchange swap arrangements between central banks are being explored as a potential solution to manage these kinds of trade imbalances.
Trade Growth Projections Support Digital Integration
Recent analysis from Boston Consulting Group projects that China’s trade with BRICS+ nations will grow at 5.5% annually through 2034, which represents the highest growth rate among major trading blocs. Marc Gilbert, managing director & senior partner and Global Leader of the Center for Geopolitics at BCG, stated:
“Global trade isn’t retreating, it’s reorganizing.”
The projections show that BRICS+ economies excluding China will achieve 3% compound annual growth rate with the rest of the world and 2.5% growth among themselves, which supports the case for cross-border digital payments that can bypass correspondent banking bottlenecks. The BRICS CBDC interoperability framework aligns with these projections that show China will surpass the US as a trade partner with the Global South.
India’s digital currency, which people call the e-rupee, has attracted a total of 7 million retail users since its launch in December 2022, while China has pledged to boost the international use of the digital yuan. However, none of the BRICS members have fully launched their digital currencies yet—all five main members continue to run pilot projects.
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Implementation Challenges And 2026 Timeline
The source cautioned that hesitation among members to adopt technological platforms from other countries could delay work on the BRICS digital currency link proposal and concrete progress would require consensus on technology and regulation. The second source said that central banks will make weekly or monthly settlements for transactions via the foreign exchange swaps.
The RBI has publicly expressed interest in linking India’s digital rupee with other nations’ CBDCs to expedite cross-border transactions and bolster its currency’s global usage. However, the RBI has said it does not aim its efforts to promote the rupee’s global use at promoting de-dollarization, even though ignoring the strategic implications of the BRICS digital currency link remains difficult.
The 2026 summit that’s being hosted by India could prove to be decisive for de-dollarization efforts and global South trade growth, though concrete progress on the BRICS digital currency link requires consensus on both technology and regulatory standards. The BRICS CBDC interoperability initiative faces challenges around governance, data sharing, and trust in technological platforms that different member countries have developed, but the initiative reflects growing momentum toward alternative payment systems that reduce dollar dependence.
Founded in 2009 by Brazil, Russia, India and China, BRICS later expanded to include South Africa and has since broadened further, adding newer members like the United Arab Emirates, Iran and Indonesia. The bloc has returned to the limelight thanks to Trump’s revived trade-war rhetoric and tariff threats, including warnings aimed at countries aligning with BRICS, which makes the BRICS digital currency link proposal even more significant for cross-border digital payments infrastructure development.