BRICS Nations Eye Digital Currency Link to Bypass US Dollar

India's central bank suggests linking digital currencies of BRICS countries to ease cross-border trade and reduce dependence on the US dollar amid geopolitical tensions. The plan, if accepted, will be discussed at the 2026 BRICS summit. It aims for interoperability among members' digital currencies like India's e-rupee.

In a move that could reshape the financial landscape, India's central bank has proposed linking the digital currencies of BRICS nations, aiming to streamline cross-border trade and reduce reliance on the US dollar. Anonymity-guarded sources reveal that the proposal may debut at the 2026 BRICS summit.

India is set to host the summit, and if the plan is accepted, it would mark the first coordinated effort to link BRICS members' central bank digital currencies (CBDCs). The BRICS bloc, including Brazil, Russia, India, China, and South Africa, seeks to enhance financial interoperability against a backdrop of escalating global tensions.

This initiative is not without controversy. Prior attempts to sideline the dollar have stirred geopolitical concerns. Previous currency trade efforts between Russia and India met with challenges, and the commitment required from BRICS nations to adopt compatible technology and frameworks remains a significant hurdle.

(With inputs from agencies.)