The Reserve Bank of India (RBI) is pushing a plan to link central bank digital currencies (CBDCs) across BRICS nations to streamline cross-border trade and tourism while chipping away at the U.S. dollar's dominance.
BRICS CBDC Link on Summit Agenda
Sources told Reuters that the RBI urged the Indian government to add the proposal to create an interconnected CBDC system to the agenda of the 2026 BRICS summit hosted by India. If adopted, it would be the first formal attempt to create a CBDC link among BRICS members: Brazil, Russia, India, China, South Africa, and newer members like the UAE, Iran, and Indonesia. However, the move risks escalating tensions with Washington. President Donald Trump has repeatedly warned BRICS against replacing the dollar, threatening 100% tariffs on any such attempts.
Mixed Progress in National CBDC Pilots
None of the core BRICS members have fully launched their CBDCs, but all are running pilots. India's e-rupee, introduced in December 2022, has reportedly drawn 7 million retail users, with the central bank boosting adoption through offline payments, programmable subsidies, and fintech wallets. China has vowed to expand the digital yuan globally and reportedly allows commercial banks to pay interest on digital yuan holdings. Other members like Brazil and Russia are also advancing their own pilots.
US-India Trade Standoff Adds Context
The BRICS CBDC proposal comes amid a US-India trade standoff. Trump's administration imposed 50% tariffs on Indian imports, including 25% specifically for Indian purchases of Russian crude oil. Trade talks nearly concluded in mid-2025 but fell apart after Indian Prime Minister Narendra Modi delayed a call with Trump, seen as a snub. A scheduled discussion on January 13 went nowhere, hurting Indian exporters in textiles, gems, and chemicals. Against this backdrop, the RBI's move is seen as a strategic effort to reduce reliance on the dollar.