The Reserve Bank of India has proposed that BRICS countries discuss a mechanism to link their national central bank digital currencies (CBDCs) to simplify payments in trade and tourism. This is not a plan to create a single bloc currency nor a revolution against the dollar, but a concrete proposal to put the issue on the summit agenda. No agreements or technical solutions exist yet—only the start of discussion.
What the RBI Proposes: Facts Without Exaggeration
The Reserve Bank of India (RBI) recommended that its government include BRICS summit discussion on linking national CBDCs. Goals are clear: accelerate settlements between member countries in trade and tourism.
Key initiative parameters:
- No single currency: Each country retains its digital rupee, yuan, ruble—they just get “bridges” for interaction.
- BRICS-focused: Simplifying operations within the bloc, without claims to globally replace the dollar.
- Stage: Proposal for discussion, without approved decisions or launch timelines.
The proposal builds on the 2025 BRICS declaration from Rio de Janeiro, where countries noted the need for cross-border payments in national currencies.
CBDC Status in 11 BRICS Countries as of January 2026
No BRICS country has launched a full-scale central bank digital currency. All projects remain at pilot stage with limited scope.
| Country | CBDC Status | Pilot Scale |
|---|---|---|
| China | e-CNY | 260+ million wallets, retail + cross-border tests |
| India | e-Rupee | 5+ million users, retail + wholesale |
| Russia | Digital Ruble | Pilot: 2,500+ wallets (2024 data), government payouts from 2026smartexsoft+1 |
| Brazil | Drex | Bank testing, CBDC-deposit focus |
| South Africa | Protea | Conceptual tests |
Common challenge: Fragmented platforms require protocol unification for interaction.
Why Link CBDCs: Real Business Effects
The initiative addresses concrete settlement pain points within BRICS:
- Trade: Currently 60%+ goes through USD (double conversion, 1–3% fees). CBDC linkage cuts chain to direct exchange.
- Tourism: Payments without cash exchange or Visa/Mastercard 2–5% fees.
- Speed: From T+2 (days) to real-time via blockchain corridors.
Example: Russian oil to India—currently USD via London; with CBDC—direct ruble-rupee clearing through central banks.
USD in BRICS Settlements: Numbers and Trends
USD share in BRICS trade declining, but slowly:
| Pair | USD Share (2025) | National Currency Growth |
|---|---|---|
| China-Russia | 47% | +20% since 2022 |
| India-Russia | 62% | +15% |
| BRICS Total | 55% | Trend to 40% by 2027 |
CBDC linkage could accelerate shift to 30–35% within bloc, but globally USD dominates (88% SWIFT).
US Reaction: Trump and Real Risks
Donald Trump called BRICS an “anti-American alliance” and threatened 100%+ tariffs for countries creating dollar alternatives. RBI initiative amplifies rhetoric, but no specific CBDC sanctions.
US position facts:
- SEC and Treasury monitor CBDC as dollar risk.
- No directives against BRICS CBDC linkage—focus on Chinese e-CNY.
- Trump tariffs remain hypothetical, trade-linked, not payments.
Technical Barriers: Why It’s Difficult
- Architectures: China—centralized DLT, Russia—hybrid, India—permissioned blockchain. Bridges needed.
- Regulation: AML/KYC differs; Russia/China stricter, India privacy-focused.
- Imbalance: China—40% BRICS GDP, $500B+ export surplus. Clearing needs swap lines.
Analogy: mBridge (BIS + China)—prototype, $190M/day volume, but only 5 countries.
BRICS Pay: Connection to India Initiative
BRICS Pay—discussed BRICS payment system for national currencies bypassing SWIFT. RBI initiative fits:
- 2024–2025 declarations set goal.
- CBDC—”digital layer” for BRICS Pay.
- No contract, but trend real.
Implementation Scenarios: From Pilot to System
| Scenario | Probability | Timeline | Effect |
|---|---|---|---|
| Bilateral pilots (RU-IN-CN) | High | 2026–2027 | 10–15% settlements |
| Full 11-country linkage | Medium | 2028+ | 25–30% bloc |
| Declaration without action | Low | — | Status quo |
Pilots start with oil/gas (RU-IN), then tourism (ZA-CN).
Comparison with Global Analogues
| System | Participants | Status | Volume |
|---|---|---|---|
| mBridge (BIS) | 5 countries | Pilot | $190M/day |
| BRICS CBDC | 11 countries | Proposal | ? |
| SWIFT gpi | 200+ countries | Full | $150T/year |
BRICS focuses on sovereignty, not competition.
Business Economics: Pros and Cons
Pros:
Cons:
- National currency volatility (rupee -5% 2025).
- No FDIC-like protection.
Regulatory Challenges
- AML/CFT: FATF standards mandatory.
- Data: GDPR-like rules for cross-border.
- Sanctions: US/EU can block banks.
2026–2028 Outlook
BRICS summit (India)—test: declaration or pilot? China leads tech, India politics. Success = 20% settlements in CBDC by 2028. No consensus = rhetoric.
Initiative—step toward diversification, not revolution. BRICS (35% world GDP) tests, doesn’t break system.
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