RBI Proposes BRICS Digital Currency Link to Cut US Dollar Dependence

RBI proposes linking BRICS digital currencies to cut U.S. dollar use and ease trade and travel payments across member nations.

India’s central bank has proposed a plan that could reshape how BRICS countries handle trade and travel payments.

The Reserve Bank of India (RBI) aims to connect digital currencies across member nations, potentially reducing the use of the U.S. dollar in cross-border transactions.

The plan is under consideration for the 2026 BRICS summit, which India is set to host later this year.

Proposal May Feature in 2026 BRICS Summit

According to Crypto India, the RBI has proposed that BRICS countries link their digital currencies.

The goal is to make cross-border trade and travel payments faster and more affordable.

This would also help reduce reliance on the U.S. dollar, which has long been the main currency in global settlements.

The proposal, if accepted, will be discussed at the upcoming BRICS summit. This would mark the first formal discussion of digital currency linkages between the countries.

The BRICS group currently includes Brazil, Russia, India, China, and South Africa, with new additions like the UAE and Iran.

The central bank’s plan aims to create smoother payment flows among members. It also fits into India’s efforts to push for broader use of the digital rupee, or e-rupee, in the global financial system.

Technology and Rules Are Key Focus Areas

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With other countries expanding fast, the future role of the dollar is now at stake.”

This highlights the tension around digital currency development globally.

While countries like India and China are moving quickly, the U.S. is still weighing the risks and benefits.

Privacy, control, and technology adoption are some of the key issues in the discussion.

As the BRICS nations push ahead, the RBI’s proposal reflects a desire to offer new payment solutions.

The focus will be on shared platforms, governance rules, and handling trade imbalances through tools like bilateral currency swaps.

Related Reading: Indian Authorities Flag Risks to Crypto Tax Compliance

US Concerns and Global Context

The plan may draw attention from the United States. U.S. President Donald Trump has previously warned against attempts to bypass the dollar.

He referred to BRICS as “anti-American” and said he could impose tariffs on members cooperating in such efforts.

BRICS was originally formed in 2009 and has expanded over time. Although past efforts to create a shared BRICS currency failed, members continue to look for new ways to cooperate economically.

The RBI’s proposal builds on a 2025 BRICS declaration to improve payment system links.

India’s e-rupee currently has around 7 million retail users. The RBI has encouraged its use by enabling offline payments and allowing fintech firms to offer wallets.

Meanwhile, other BRICS countries are also conducting digital currency pilots.

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