RBI Proposes BRICS Digital Currency Linkage for Cross-Border Payments by 2026 Summit

• The Reserve Bank of India (RBI) has proposed linking BRICS nations' official digital currencies (CBDCs) to streamline cross-border payments for trade and tourism.
• The proposal, if approved, would be the first formal attempt to interlink BRICS CBDCs, aiming to reduce reliance on the US dollar amidst geopolitical tensions.
• India is set to host the 2026 BRICS summit, where the RBI suggests placing this proposal on the agenda.
• All five core BRICS economies are currently running CBDC pilot programs, with India's e-rupee attracting seven million retail users and China pushing its digital yuan.
• A common framework for technology, governance, and trade imbalance settlement is crucial for success, with bilateral foreign exchange swap lines being explored as an option.

Why It Matters: RBI proposes linking BRICS digital currencies by 2026 to ease cross-border payments and reduce dollar dependence.