India’s central bank is exploring a significant shift in how cross-border payments could function within the BRICS bloc, signaling a broader ambition to reduce dependence on the US dollar and reshape the architecture of international finance. According to a Reuters report dated January 19, the Reserve Bank of India (RBI) has proposed linking the digital currencies of BRICS nations, a move primarily aimed at simplifying cross-border transactions, particularly in areas such as tourism and retail payments.

The proposal comes at a time of heightened geopolitical tensions and growing skepticism among emerging economies toward Western-dominated financial systems. By interconnecting central bank digital currencies (CBDCs) issued by BRICS members, India and its partners could create an alternative payment ecosystem that operates parallel to traditional dollar-based mechanisms.

India, which will assume the BRICS presidency in 2026 and host the group’s summit later that year, is expected to place this issue on the formal agenda. The initiative reflects New Delhi’s broader strategic objective of balancing its engagement with the West while deepening cooperation with fellow BRICS members, including Russia and China.

At the core of the proposal is India’s own digital currency, the e-rupee. Launched in December 2022, the e-rupee has steadily expanded its user base, reaching approximately seven million retail users, according to figures cited in the Reuters report. While still modest compared to India’s overall population, the uptake has been sufficient to encourage policymakers to explore its use beyond domestic transactions.

China, meanwhile, has been far more aggressive in advancing its digital yuan, positioning it as a tool for both domestic efficiency and international influence. Beijing has repeatedly stated its intention to boost the global use of the........

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