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India’s central bank wants BRICS members to use their own digital currencies, aiming to help pay for trade and tourism across the border as tensions rise and many countries look for ways to become less dependent on the US dollar.
Reuters reported On Monday, the Reserve Bank of India urged the government to put forward the idea of a central digital bank at the 2026 BRICS summit, which India is expected to host.
If New Delhi approves, the proposal will reach the BRICS table as an official proposal for the first time.
For the cryptocurrency markets, these ideas fall into the familiar territory. Payment infrastructure has become a battlefield, and tokenized money, whether official cryptocurrencies or private stablecoins, is at the center of the debate on speed, cost and control.
The central bank’s digital currency is based on BRICS’s previous offering
The plot could draw criticism from Washington. US President Donald Trump previously described the bloc as “anti-American” and threatened to impose tariffs on BRICS members, according to a Reuters report.
The RBI’s move is based on the language of the BRICS’ 2025 Rio de Janeiro Declaration, which supported the centralization of payment systems among members to facilitate cross-border transactions.
India’s central bank has publicly expressed its interest in linking the digital currency to other central bank currencies, citing it as a way to speed up border payments and expand the use of the currency, according to the report. The bank stressed that its efforts to expand the use of the rupee around the world are not aimed at promoting demonetisation.
The Reserve Bank of India has warned that the growth of stablecoins could reduce financial confidence
The BRICS still needs to take some initial steps before this link becomes operational. None of its member states – Brazil, Russia, India, China and South Africa – have established central bank currencies, and each is still undertaking its own initial initiatives. In its first trial, the number of e-rupee users in India has reached about 7 million users as of December 2022.
Implementation also depends on the difficult decisions that cryptocurrency developers have made, common technical standards, regulatory rules, and a way to deal with trade imbalances that can build up when one side exports more than it exports.
One of the measures being discussed involves foreign exchange transactions between central banks.
The problem of this imbalance is not imaginary. Reuters reported that previous efforts by Russia and India to expand local currency trade have met with difficulties after Russia acquired a large amount of the rupee without stricter spending measures, prompting the Reserve Bank of India to allow the currency to be invested in local bonds.
However, India continues to show its push for a central bank for digital currency as an alternative to private investment, and the Reserve Bank of India has warned that the spread of stablecoins could undermine financial stability and financial dependence.
A note India’s central bank wants to connect the digital currencies of central banks among BRICS countries as members seek to reduce reliance on dollar-based payment networks. appeared for the first time Cryptonews Arabic.
