RBI Recommends Linking BRICS' Digital Currencies: Report
New Delhi: The Reserve Bank of India (RBI) has proposed the linking of digital currencies of BRICS nations to ease trade and tourism payments, reducing their reliance on the US dollar, news agency Reuters has reported.
The central bank has recommended the Union government to include this proposal in the agenda for the BRICS summit to be held in India later this year, according to two anonymous sources quoted by Reuters.
The proposal comes amid rising geopolitical tensions and an India-US trade deal still in limbo. The US has previously opposed any attempts to move away from the dollar as the key currency for international trade and other payments.
US President Donald Trump had also threatened BRICS nations – Brazil, Russia, India, China, South Africa and others – with 100% tariffs if they create a currency to rival the US dollar.
If the RBI’s proposal is accepted, it would mark the first instance of BRICS nations discussing linking central bank digital currencies (CBDCs), the report said.
The central banks of India, Russia, China, South Africa and Russia did not offer a comment on this development.
The proposal builds on a 2025 declaration at the BRICS summit in Brazil, which aimed at making cross-border payments more efficient. While the RBI has publicly expressed interest in linking India's digital rupee with other nations' CBDCs, it has maintained that the move is not aimed at de-dollarisation.
The five founding members of the alliance are running pilot projects for developing their digital currencies. India’s digital currency – the e-rupee, which was launched in 2022 – has a total of 7 million retail users, Reuters reported.
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