By HAN News Desk
NEW DELHI — India’s central bank has proposed linking the digital currencies of BRICS nations in an effort to streamline cross-border trade, reduce transaction costs and strengthen economic cooperation among the bloc’s fast-growing economies.
The Reserve Bank of India (RBI) said the proposal would focus on improving interoperability between central bank digital currencies (CBDCs) issued by BRICS members, allowing faster and cheaper settlements for trade, tourism and remittances without relying heavily on existing global payment systems.
If implemented, the initiative could significantly reduce the cost and time involved in cross-border payments, which currently depend on multiple intermediaries and foreign currency conversions. RBI officials said a connected digital currency framework would allow payments to be settled directly between participating central banks, increasing efficiency and transparency.
The proposal comes as BRICS — which includes Brazil, Russia, India, China and South Africa, along with newly admitted members — seeks to expand economic integration and reduce dependence on Western-dominated financial infrastructure. Several BRICS countries have accelerated the development of their own CBDCs in recent years as part of broader financial modernization efforts.
Under the RBI’s concept, each country would retain full control over its domestic digital currency, while a shared platform would enable seamless cross-border transactions. Such a system could benefit exporters, small and medium-sized enterprises and tourists by minimizing foreign exchange fees and settlement delays.
Analysts say the initiative also carries strategic implications. By reducing reliance on international payment networks such as SWIFT and the U.S. dollar-based settlement system, BRICS countries could gain greater financial autonomy amid rising geopolitical tensions and sanctions-related risks.
However, experts caution that significant challenges remain. Differences in regulatory frameworks, data protection rules, cybersecurity standards and monetary policy priorities among BRICS members could complicate implementation. Political consensus and extensive technical coordination would be required before the system could become operational.
The RBI did not provide a timeline for the proposal, emphasizing that discussions are still at an exploratory stage. Any final framework would depend on agreement among BRICS central banks and alignment with domestic financial regulations.
The proposal underscores the growing importance of digital currencies in reshaping the global financial system and highlights BRICS’ ambition to play a larger role in defining the future of cross-border payments.
