The Reserve Bank of India (RBI) reportedly proposed a groundbreaking plan to link the official Central Bank Digital Currencies (CBDCs) of BRICS nations on Monday, 19 January 2026.
The recommendation, submitted to the Indian government, suggests placing this initiative on the agenda for the 2026 BRICS summit, which India is set to host later this year.
The proposal aims to streamline cross-border trade and tourism payments by making them faster and cheaper while potentially reducing reliance on the US dollar amid shifting geopolitical landscapes.
If accepted, this would mark the first formal attempt by the bloc, which now includes ten members like the UAE, Iran, and Indonesia, to interconnect their digital financial systems.
The Rio Declaration
The RBI’s current push follows a significant 2025 declaration at the BRICS summit in Rio de Janeiro, where member nations committed to enhancing the interoperability of their domestic payment systems.
While the idea of a common BRICS currency has faced numerous hurdles and was previously shelved, the focus has now shifted toward the more practical integration of existing digital currencies like India’s e-rupee and China’s digital yuan.
This move comes at a time of heightened trade tensions, as US President Donald Trump has recently reiterated threats of 100 percent tariffs on nations attempting to bypass the dollar, adding a layer of geopolitical urgency to the bloc’s digital infrastructure plans.
Streamlining Trade
According to officials familiar with the proposal, the successful linkage of CBDCs would require a unified consensus on governance rules and interoperable technology standards. To handle potential trade imbalances, the RBI is exploring the use of bilateral foreign exchange swap arrangements between central banks.
“The e-rupee is a safer, more regulated alternative to global stablecoins,” noted RBI Deputy Governor T. Rabi Sankar in a recent briefing, emphasizing that CBDCs mitigate risks related to monetary stability and systemic resilience.
Since its launch in late 2022, India’s e-rupee has already reached over seven million retail users, providing a robust foundation for this international expansion.
The Logical Indian’s Perspective
At The Logical Indian, we believe that the evolution of global finance should always prioritize the well-being of people and the sovereignty of nations.
The RBI’s proposal is a forward-thinking step toward a more multipolar and inclusive economic system, where emerging economies can trade with greater autonomy and less friction.
By facilitating smoother payments for tourism and small businesses, this digital bridge can foster deeper cultural and economic ties between the Global South. We advocate for a financial future built on mutual respect and technological cooperation rather than one dominated by any single currency.
