BRICS Nations Explore Digital Currency Link to Sidestep USD

India proposes linking BRICS countries' digital currencies to enhance cross-border trade and tourism, reducing reliance on the U.S. dollar amidst rising geopolitical tensions. If approved, this initiative, set for the 2026 BRICS summit, could challenge established economic norms, prompting varied reactions globally.

India is spearheading a groundbreaking proposal urging BRICS nations to connect their digital currencies to streamline cross-border trade and tourism payments. This strategic move, designed to lessen dependency on the U.S. dollar amid increasing geopolitical tensions, could redefine global economic practices.

The Reserve Bank of India (RBI) has suggested including this pivotal topic in the agenda for the upcoming 2026 BRICS summit, hosted by India. Should the proposal pass, it would mark the first move towards a unified digital currency framework among BRICS members, encompassing Brazil, Russia, India, China, and South Africa.

The initiative, however, risks inciting U.S. backlash, given past warnings against dollar circumvention. The feasibility of the plan rests on solving complex challenges like technological interoperability and regulatory consensus, amidst members' hesitations over foreign platform adoption.

(With inputs from agencies.)