- BRICS nations are accelerating development of payment systems using central bank digital currencies (CBDCs) to shift away from traditional, dollar-dominated infrastructure.
- The Reserve Bank of India is spearheading this effort, pushing for CBDC-enabled cross-border arrangements to improve settlement times and reduce costs.
- The approach focuses on a blockchain-based architecture, similar to the mBridge platform, which avoids creating a common currency while aiming to reduce reliance on networks like SWIFT.
- Programmable capital controls are a design feature of these systems, with the Indian e-rupee, for example, restricting non-resident access and preventing offshore circulation.
BRICS nations, led by an initiative from the Reserve Bank of India, are currently developing new payment settlement systems through CBDCs and cross-border platforms. This strategic shift aims to create corridors that reduce reliance on existing Western-controlled networks. Consequently, the focus is on practical frameworks like the mBridge CBDC platform and de-swifting alternatives.
The RBI has urged the Indian government to prioritize this agenda for the 2026 BRICS summit. Governor Sanjay Malhotra emphasized at the IMF-World Bank meeting that cross-border payment benefits require multi-country CBDC adoption. “In the cross-border space, there is absolutely no improvement as such,” Deputy Governor T Rabi Sankar stated, highlighting transaction costs of five to six percent and multi-day settlement times.
However, the proposed blockchain architecture for these payments avoids creating a new common currency. This model uses a neutral bridge layer for foreign exchange settlement, theoretically similar to the mBridge program. Meanwhile, officials confirm progress on creating multi-level settlement systems with reliable security mechanisms.
Foreign Affairs Minister Maxim Ryzhenkov supported this at the July 2025 Rio Summit. “We support efforts to create a multi-level settlement system that combines innovative payment instruments with reliable security mechanisms,” he said. India’s External Affairs Minister S. Jaishankar clarified the nation’s stance, noting the dollar’s role in international economic stability.
Capital controls are therefore embedded into the design of these CBDC systems. Given the Indian rupee is not fully convertible, cross-border e-rupee flows face legal restrictions. The policy stance allows non-resident access only within specific corridor limits, with no offshore circulation permitted.
The infrastructure development is progressing steadily, with secure links between systems like Russia’s SPFS and others being partially implemented. The emphasis has accelerated from domestic testing to achieving cross-border interoperability for sovereign monetary cooperation.
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