India Proposes Linking BRICS Digital Currencies to Reduce USD Reliance

India has proposed that BRICS countries link their Central Bank Digital Currencies (CBDCs) to facilitate cross-border trade and reduce reliance on the US dollar. This proposal, if accepted, will be discussed at the 2026 BRICS summit, which India will host.

Key Points

The Reserve Bank of India suggests linking CBDCs among BRICS nations: Brazil, Russia, India, China, and South Africa.
This move is seen as a strategic step amidst rising geopolitical tensions.
The idea aims to challenge the dominance of the USD in international trade.

US President Donald Trump previously threatened tariffs on BRICS members if they pursued drastic monetary changes. The BRICS bloc has been working toward decreasing their dependence on the dollar, including announcing a blockchain-based payment system in 2024 for independent trade settlements.