RBI Recommends Linking BRICS CBDCs To Reduce Reliance On US Dollar

New Delhi, Jan 19 (KNN) The Reserve Bank of India (RBI) has proposed that BRICS nations link their central bank digital currencies (CBDCs) to make cross-border trade and tourism payments faster, cheaper and less reliant on the US dollar, according to two sources cited by Reuters.

Proposal for BRICS Agenda

The RBI has recommended that the proposal be taken up at the 2026 BRICS summit, which India is expected to host later this year. If accepted, it would mark the first formal consideration by BRICS of linking members’ official digital currencies.

The move builds on a declaration at the 2025 BRICS summit in Rio de Janeiro, which called for interoperability among payment systems to improve cross-border transactions. The RBI has said such efforts are aimed at efficiency, not de-dollarisation.

Geopolitical and Policy Context

BRICS, formed by Brazil, Russia, India, China and South Africa, has expanded to include countries such as the UAE, Iran and Indonesia. 

Any initiative seen as reducing dollar dependence could face opposition from the US, which has warned against efforts to bypass the dollar in global trade.

CBDC Status and Challenges

While no BRICS member has fully launched a retail CBDC, all are running pilot programmes. 

India’s e-rupee has around 7 million retail users since its launch in December 2022. China has also sought to expand the international use of the digital yuan.

Sources said CBDC linkage would require agreement on technology standards, regulation and governance, with mechanisms needed to manage trade imbalances. Options under discussion include bilateral foreign exchange swaps between central banks.

Stablecoins Concerns

The RBI continues to position the e-rupee as a regulated alternative to stablecoins. RBI Deputy Governor T Rabi Sankar has cautioned that stablecoins could pose risks to monetary stability and financial systems, a concern echoed by India in global policy discussions.

(KNN Bureau)