India Urges BRICS CBDC Connectivity Plan As Bloc Tests Dollar Rails Shift

TLDR

Table of Contents

RBI wants BRICS CBDC connectivity proposal added to the 2026 summit agenda.
India’s e-rupee retail pilot has reached about 7 million users since 2022.
No BRICS member has fully launched a CBDC, with all still running pilots.
RBI warns stablecoin growth may weaken monetary trust and financial stability.

India’s central bank has proposed a new digital payment link between BRICS members as countries seek alternatives to dollar-based systems. The idea aims to connect official digital currencies for trade and tourism payments. The proposal comes as global payment rails face political pressure. It also reflects rising interest in state-backed digital money. The plan could reach the BRICS agenda in 2026 if approved.

RBI Pushes CBDC Connectivity Plan for BRICS Agenda

The Reserve Bank of India has advised the government to place a CBDC connectivity plan before BRICS leaders. Reuters reported the recommendation on Monday. India will host the BRICS summit in 2026. The proposal would appear on the official agenda if approved by New Delhi.

The central bank sees digital currency links as a way to support cross-border payments. Officials aim to improve trade settlement speed and reduce transaction costs. Tourism payments could also benefit from direct digital currency channels. The RBI has stated that the plan does not target de-dollarization. It has instead framed the effort around payment efficiency and system resilience.

India's Reserve Bank of India (RBI), the country's central bank, has proposed linking central bank digital currencies (CBDCs) across BRICS nations (Brazil, Russia, India, China, South Africa, and others) to simplify cross-border trade, tourism payments, and potentially shield… pic.twitter.com/CcY65jXz9Q
— Legislative Vibes (@LegislativeV) January 19, 2026

India’s digital rupee pilot remains central to this push. The retail trial has reached about seven million users since December 2022. Authorities continue to test merchant adoption and wallet usage. The pilot also supports offline payments in limited cases. These tests provide technical data for future cross-border use.

Other BRICS members also remain in pilot phases. Brazil, Russia, China, and South Africa are testing digital currency models. None has launched a full retail CBDC. Coordination would require aligned timelines and shared infrastructure.

BRICS Payment Goals Build on Past Commitments

The proposal builds on earlier BRICS statements on payment cooperation. The 2025 Rio de Janeiro declaration supported better payment system interoperability. Leaders agreed to improve cross-border transaction efficiency. The RBI has referenced this pledge in public remarks.

Political factors also shape the discussion. The United States has criticized BRICS cooperation in recent years. President Donald Trump previously described the bloc as “anti-American.” He also warned about tariffs on BRICS countries. These tensions add pressure on members to explore independent payment rails.

India has stressed that currency use expansion is not a political project. Officials have said the rupee’s wider use supports trade stability. The RBI continues to engage with global partners on settlement systems. It also works with regional platforms for digital payments.

The CBDC link proposal could serve as a technical step. It would not replace existing systems immediately. Instead, it could add another option for settlement between central banks.

Technical Barriers and Settlement Challenges Remain

The plan faces technical and governance hurdles. Shared standards are required for messaging and security. Members must also agree on compliance rules. Data sharing and privacy controls need common frameworks.

Trade imbalance settlement remains another concern. Some countries export more than they import. This creates large currency balances. Reuters reported past issues between India and Russia. Russia accumulated large rupee holdings with limited use options. The RBI later allowed these funds to enter local bond markets.

One solution under discussion involves foreign exchange swap lines. Central banks could use swaps to manage short-term imbalances. This approach already exists in traditional finance. However, CBDC integration adds new operational requirements.

Payment speed also depends on infrastructure quality. Network uptime and wallet security remain critical. Each country must upgrade systems before linking networks.

RBI Warns About Stablecoin Risks and Market Trust

India’s central bank has warned about private stablecoin growth. Officials say widespread use could weaken monetary trust. They also cite risks to financial stability. The RBI has promoted CBDCs as regulated digital money alternatives.

The stablecoin debate continues across emerging markets. Some countries use stablecoins for remittances. Others worry about capital flow control. India maintains strict oversight of digital asset markets. It prefers central bank issued tools for payments.

The CBDC link idea fits this policy stance. It supports state-backed payment systems. It also limits reliance on private issuers. The RBI continues to test features through the e-rupee pilot.

The proposal now awaits government review. If approved, it will move to BRICS discussions in 2026. The outcome will shape future payment cooperation among member states.