India is pushing for BRICS countries to link their central bank digital currencies to facilitate faster and cheaper cross-border payments, despite political and technical obstacles that could delay implementation.
The proposal from the Reserve Bank of India is expected to feature on the agenda of the BRICS leaders’ summit in New Delhi on September 12 and 13, according to two people familiar with the discussions. India is chairing the group this year.
The initiative would seek to connect the official digital currencies of the 11-member BRICS bloc, allowing countries to conduct cross-border transactions through interoperable digital payment systems.
India has presented the proposal primarily as a way to make international transactions faster and less expensive, rather than as an effort to create an alternative to the US dollar. The distinction reflects New Delhi’s more cautious approach to BRICS discussions on reducing reliance on the dollar.
However, the plan is facing significant hurdles. Digital currencies remain at different stages of adoption among BRICS members, making it difficult to establish a common technical framework.
Political tensions within the expanded group could also complicate negotiations. Financial ties between Iran and the United Arab Emirates have been disrupted by the US-Iran conflict, while India remains cautious about deeper financial integration with China because of national security concerns.
The proposed system could also require currency-swap arrangements to manage trade imbalances between member countries. Such arrangements would be necessary to ensure that cross-border transactions can continue smoothly when trade flows are uneven.
The initiative builds on a commitment made by BRICS leaders in 2025 to improve interoperability between payment systems. In August, RBI Governor Sanjay Malhotra said BRICS members were discussing possible links between their fast-payment systems and central bank digital currencies, although he stressed that discussions remained at an early stage.
BRICS now comprises Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Indonesia, Iran, Saudi Arabia and the United Arab Emirates.
For India, linking digital currencies could complement existing efforts to expand the use of its Unified Payments Interface and local currencies in international transactions.
The proposal nevertheless faces a long path from political agreement to implementation. Differences in regulation, technology, currency controls and geopolitical priorities mean that agreeing on a common payment architecture could prove difficult.
The discussions come as BRICS seeks to deepen financial cooperation while avoiding a formal common currency. India has consistently opposed efforts to frame the bloc’s financial initiatives as a direct challenge to the dollar.
If implemented, a connected CBDC system could reduce dependence on traditional correspondent banking networks and lower transaction costs for trade and tourism among participating economies.
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Emmanuel Abara Benson is a business journalist and editor covering artificial intelligence, global markets, and emerging technology.
He has previously worked with Business Insider Africa and Nairametrics, reporting on finance, startups, and innovation.
His work focuses on AI, digital economy, and global tech trends.
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