RBI Proposes Linked BRICS Digital Currencies to Sidestep US Dollar in Cross-Border Trade
MUMBAI — The Reserve Bank of India (RBI) has formally suggested a plan to interconnect the Central Bank Digital Currencies (CBDCs) of BRICS nations to facilitate direct, instant trade settlements. RBI Governor Shaktikanta Das, speaking at a financial technology conference on Monday, January 19, 2026, outlined a framework where the “e-Rupee” could be traded directly against the digital currencies of Brazil, Russia, China, and South Africa.
The proposal is designed to create an alternative financial corridor that operates independently of the US dollar and the Western-led SWIFT messaging system.
Moving Toward “Atomic Settlement”
The core of the RBI’s pitch is the concept of “interoperability” allowing the national digital ledgers of different countries to communicate directly. Currently, an Indian company paying a supplier in a BRICS nation typically routes the transaction through “correspondent banks” in New York or London. This process requires converting local currency into US dollars and then into the final destination currency, a cycle that often takes several days and incurs multiple layers of fees.
By linking CBDCs, the RBI aims to enable “atomic settlement,” where the transfer of assets and the clearing of payments happen simultaneously and in real-time. This would eliminate the need for a third-party “bridge currency” like the dollar for bilateral trade.
The mBridge Foundation
The RBI’s proposal highlights the potential use of the “mBridge” platform, a multi-CBDC project already involving central banks in the UAE, China, and Thailand. Integrating the BRICS bloc into such a digital infrastructure would allow member nations to bypass traditional intermediaries entirely.
According to the RBI, the primary benefits of this digital link would include:
- Near-Zero Transaction Fees: By removing correspondent banks and currency conversion spreads.
- 24/7 Processing: Unlike legacy banking systems that operate on “T+2” settlement cycles and observe regional bank holidays.
- Sovereign Security: Ensuring trade data and fund flows remain within the digital architecture of the participating nations.
Technical and Governance Hurdles
While the initiative promises significant cost savings, the RBI noted that several technical barriers remain. Participating central banks would need to align their cybersecurity protocols, data privacy laws, and anti-money laundering (AML) standards to ensure the network is secure.
Governor Das indicated that the RBI is preparing a technical whitepaper for the BRICS “Contact Group on Economic and Trade Issues.” This document will reportedly detail a “plug-and-play” model, allowing newer BRICS+ members including Iran, Egypt, and Ethiopia to join the digital payment network as their own CBDC programs mature.
Current Status of the e-Rupee
India has already scaled its domestic CBDC pilots, with the e-Rupee now boasting over five million active users and participation from major commercial banks. This BRICS-focused proposal marks the central bank’s most significant move to transition the digital rupee from a domestic experiment into a tool for international macro-finance.
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