RBI proposes interoperable digital currency network for BRICS trade settlement

The Reserve Bank of India (RBI) has proposed the creation of an interoperable digital currency framework among BRICS nations, modeled conceptually on global messaging systems such as SWIFT, to enable faster, cheaper, and more direct cross-border trade and tourism payments.

The proposal builds on discussions formalised in the BRICS declaration of 2025 , where member nations agreed to explore greater use of local currencies and digital public infrastructure to reduce dependence on the U.S. dollar-dominated financial system. Since then, central banks across the bloc have been running pilot projects involving central bank digital currencies (CBDCs), including India’s e-rupee , China’s digital yuan , and Russia’s digital ruble .

Under the RBI’s vision, these CBDCs would be technically linked through a shared or interoperable settlement layer, allowing businesses and travellers to transact directly in digital sovereign currencies without routing payments through dollar-based correspondent banking networks or platforms like SWIFT. Such a system could significantly cut transaction costs, settlement times, and currency conversion risks for BRICS economies, whose combined annual trade exceeds $6 trillion .

India’s e-rupee has emerged as a key test case. Launched in late 2022, the digital currency has crossed seven million users , with increasing adoption in retail payments and select wholesale settlement trials. RBI officials have argued that extending this infrastructure cross-border could enhance trade efficiency while preserving national monetary sovereignty.

However, the proposal faces significant challenges. BRICS countries are developing CBDCs on different platforms, complicating technical interoperability and governance coordination. U.S. President Trump criticised such efforts, warning they could undermine the dollar’s dominance. Still, India views cross-border CBDC linkages as a way to cut settlement costs and boost trade efficiency without threatening global currency stability.

Governance and trust present another obstacle. Unlike SWIFT, which operates under a well-established multilateral framework, a BRICS digital settlement network would need agreed rules on data sharing, dispute resolution, compliance standards, and system oversight areas where political and regulatory priorities often diverge.

There are also geopolitical and regulatory risks , including concerns from global financial institutions about fragmentation of payment systems and the potential for sanctions circumvention. Cybersecurity and resilience against cross-border digital attacks will be critical to the system’s credibility.

Despite these challenges, momentum is building as India prepares to host the BRICS Summit in 2026 , where digital payments and financial infrastructure are expected to feature prominently. The RBI’s proposal underscores a broader strategic push by emerging economies to reshape global payment architecture gradually, but decisively away from dollar-centric systems.