- India will propose a central bank digital currency (CBDC) linkage at the BRICS summit on September 12 and 13.
- The Reserve Bank of India (RBI) suggested linking all member nations’ digital currencies for cross-border trade.
- A CBDC mechanism could save billions in transaction fees by eliminating currency conversion and sidelining the U.S. dollar.
India is set to pitch a central bank digital currency (CBDC) linkage at the upcoming BRICS summit on September 12 and 13, according to a report by the Hindu Business Line. The Reserve Bank of India (RBI) proposed linking the digital currencies of all member central banks for trade and transactions earlier in January.
A source tracking the matter told the publication that finance ministers of all member nations will meet in early September to discuss the way forward. “The BRICS Finance Ministers and Central Bank Governors (FMCBG) track is expected to meet again in early September to provide greater clarity on the possible way forward on CBDC and fast payment system linkages that could be adopted at the BRICS Summit,” the source said on condition of Anonymity.
The CBDC payment system can save the 11-member bloc billions in transaction fees during settlements. The conversion rate will no longer apply, as the alliance sidelines the U.S. dollar for trade. The digital currency will be available only to member nations, preventing other currencies from entering the mechanism.
This development makes the bloc self-reliant and independent of external payment services. The U.S. dollar would be the hardest hit if the plan proceeds as designed. BRICS has explored CBDC currency for over three years and could achieve a breakthrough at the 2026 summit. India is set to host the 18th summit in New Delhi next month, where world leaders, finance ministers, and diplomats will attend.
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