The Reserve Bank of India (RBI) announced on January 19 that it is preparing a proposal to promote interoperability among central bank digital currencies (CBDCs) within the BRICS bloc.
?RBI has proposed linking the digital currency of BRICS nations to ease cross border trade and tourism payments. pic.twitter.com/o4Dt6DuQ7V
— Indian Infra Report (@Indianinfoguide) January 19, 2026
The Indian government is expected to place CBDC connectivity among BRICS member states on the agenda of the BRICS Leaders’ Summit in 2026, when India will serve as chair. The initiative aims to link national digital currencies to improve the speed, efficiency, and cost of cross-border payments.
The proposal builds on commitments outlined in the 2025 Rio de Janeiro Declaration, which emphasized enhancing interoperability between payment systems across BRICS countries. If implemented, the framework could significantly reduce transaction costs and settlement times for cross-border trade, strengthening financial integration within the bloc.
Focus on Trade and Tourism Payments
According to the RBI, connecting India’s digital rupee with other BRICS CBDCs would facilitate smoother payments in trade finance and tourism, enabling near-instant settlement and lowering operational costs for businesses and consumers.
While Brazil, Russia, India, China, and South Africa have all launched CBDC pilot programs, none have yet achieved full-scale retail adoption. Market participants are closely watching whether CBDCs can eventually offer convenience comparable to major cryptocurrencies and altcoins.
India introduced the digital rupee in December 2022 and has reportedly reached around 7 million users. The central bank is expanding adoption through features such as offline payments and the use of CBDCs for government subsidy disbursements.
The RBI has also encouraged fintech innovation by allowing private companies to develop CBDC-compatible wallets using crypto wallet technology, further strengthening the digital currency ecosystem.
De-Dollarization Concerns and Structural Challenges
Geopolitical tensions form part of the backdrop to the proposal. The United States has expressed concern over initiatives that bypass dollar-based settlement systems, and former President Donald Trump previously criticized BRICS as “anti-American,” warning of potential tariff measures.
Indian officials maintain that de-dollarization is not the primary objective, but analysts note that interoperable BRICS CBDCs could nonetheless reduce reliance on the US dollar by providing an alternative cross-border settlement mechanism.
Amid shifting global monetary dynamics, investor interest in Bitcoin (BTC) as a diversification and hedge asset remains strong.
However, major hurdles remain. Differences in payment infrastructure, regulatory frameworks, and technical standards across BRICS nations complicate the creation of a unified CBDC system. Trade imbalances also pose challenges, as seen previously when Russia accumulated large amounts of rupees with limited usability in bilateral trade with India.
To address these issues, policymakers are reportedly exploring mechanisms such as central bank currency swap agreements and periodic settlement models on a weekly or monthly basis.
RBI Maintains Cautious Stance on Stablecoins
While CBDC development accelerates, the RBI continues to take a cautious view of privately issued stablecoins. Deputy Governor T. Rabi Sankar has warned that stablecoins may pose risks to financial stability, reiterating the central bank’s position that CBDCs offer a safer, more controlled alternative.
