India’s central bank has pitched a BRICS-wide digital currency network that would link sovereign CBDCs—like the e‑rupee and China’s digital yuan—into a common settlement rail by 2026, aiming to simplify cross‑border trade and tourism while reducing reliance on the U.S. dollar. The Reserve Bank of India (RBI) has asked the government to put the proposal on the official agenda for the 2026 BRICS summit, which India will host. If adopted, it would be the first coordinated multilateral effort to interconnect national CBDCs and enable direct payments in local digital currencies across member states. Rationale and benefits - Direct CBDC settlements would bypass dollar‑centric correspondent banking corridors, cutting intermediaries, lowering fees, and speeding up settlement times. - The RBI frames the initiative as a tool for economic resilience—insulating trade flows from external political pressure amid recent tariff threats and criticism of BRICS from some U.S. political figures. - The central bank also positions the e‑rupee as a regulated alternative to private stablecoins, which it regards as a risk to monetary sovereignty and financial stability. Technical and political hurdles - Implementation requires cross‑country agreement on interoperability standards and governance frameworks. - The task has become more complex as BRICS expanded to include new members such as the UAE, Iran, and Indonesia. - One practical mechanism under consideration is bilateral foreign‑exchange swap lines between central banks to manage trade imbalances. Where the members stand - As of January 2026, India’s e‑rupee has about 7 million retail users. China is actively promoting the international use of its digital yuan. Brazil, Russia, and South Africa are running advanced CBDC pilots. - The RBI’s proposal would link these ongoing national projects into a shared settlement layer—if BRICS leaders agree. Why it matters for crypto and cross‑border payments A BRICS CBDC bridge could materially change how emerging economies settle trade, potentially reducing demand for dollar‑based correspondent banking and creating regulated on‑ramps that compete with private stablecoins for cross‑border liquidity. Endorsement at the 2026 summit could mark a major step toward a new multilateral digital settlement architecture for the Global South. Read more AI-generated news on: undefined/news

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