New Delhi: India is pushing other BRICS nations for an interconnection of their digital currencies to make trade speedy and affordable among the nations. The meeting of the BRICS countries will be discussed in the New Delhi hosting of the summit of the seven countries by India on September 12-13, 2026.
What India wants
It was an idea of the Reserve Bank of India (RBI). The idea is straightforward: to establish a linkage between the official digital currencies of each country, known as a CBDC (Central Bank Digital Currency), so that transferring funds between countries doesn’t require the assistance of banks. While India hopes to add more nations to its list of countries looking to pay using these digital currencies, it has not demanded a single collectively managed payment network, which it considers as a direct challenge to the dollar. Indian digital currency, e-rupee, which was got launched in 2022, and it is currently in use by nearly 7 million users in the country.
Why this is hard
This isn’t going to be an easy task for India. India is the chair of BRICS this year, and might wish to push forward with this plan, but logistical and political challenges could slow down these efforts. Not all of the members of the group consider each other to be trustworthy. In the UAE, for instance, they have severed the financial ties with Iran, making it challenging to work together. India is even more careful on its dealings with China’s digital systems as it refused to allow a Chinese payment company to connect on a payment network with India due to security concerns.
The United States is also a consideration. America might perceive this digital currency plan to be a means for BRICS to navigate around the dollar, as President Trump has labeled it anti-American and threatened tariffs on the nations of the group.
Will India win?
At this time no one knows for certain. It will depend on the extent to which other member countries are willing to do their part and the response of the US. Whether the entire plan fails, it will likely not be an outright disaster because it has not been properly executed. Rather, BRICS countries will take baby steps such as conducting test pilot projects between two or three countries first rather than constructing one huge system at a time.
What happens if it doesn’t work
In the event of the plan going off the mark or delay, India will continue to expand its e-rupee domestically. India could promote the adoption of the Digital Rupee in welfare distribution and normal transactions. In addition, BRICS countries can return to the old strategies such as the currency swap agreements, which are also aimed at cutting down on the use of the dollar, rather than a digital currency system.
