Catenaa, Thursday, January 22, 2026- India’s central bank is advocating for BRICS nations to connect their central bank digital currencies (CBDCs) to simplify cross-border trade and tourism payments, Reuters reported Monday.
The Reserve Bank of India (RBI) recommended that the government place a CBDC connectivity proposal on the agenda for the 2026 BRICS summit, which India will host.
If approved, it would mark the first formal presentation of such a plan at the BRICS table.
The initiative builds on the 2025 BRICS Rio de Janeiro declaration, which encouraged greater interoperability between members’ payment systems.
India’s e-rupee pilot has reached roughly 7 million retail users since December 2022, and RBI officials have expressed interest in linking the digital rupee with other CBDCs to speed settlements and expand global usage, while emphasizing that the move is not intended to accelerate de-dollarization.
Implementation faces hurdles, including technical standards, governance, and managing trade imbalances between countries.
One solution under consideration involves bilateral foreign exchange swap arrangements. Past attempts by India and Russia to expand local-currency trade encountered difficulties, with excess rupee balances accumulating in Russia, prompting the RBI to allow investments in local bonds.
RBI officials have also warned that rapid growth of privately issued stablecoins could undermine monetary trust and financial stability.
The proposal highlights the strategic role of CBDCs as regulated alternatives to private digital currencies and positions BRICS as a potential hub for faster, lower-cost cross-border payments outside traditional dollar rails.
