Reserve Bank of India proposes linking BRICS digital currencies
India, which assumed the BRICS presidency in 2026 and will host this year’s summit, hopes the move will encourage wider adoption of digital currencies within the bloc. India’s own digital currency, the e-rupee, has gained 7 million retail users since its launch in December 2022. China has similarly pledged to promote the international use of its digital yuan.
The report noted that US President Donald Trump previously warned that BRICS efforts to challenge the dollar would trigger economic retaliation. In response, member countries such as India and Brazil have emphasized protecting their domestic interests. Russia has highlighted that settling trade in national currencies provides BRICS countries a stable alternative to Western financial institutions.
In 2024, national currencies accounted for 65% of BRICS trade, while the dollar and euro fell below 30%. Russia and China conducted nearly all bilateral trade, totaling $245 billion, in rubles and yuan. Although Brazil had proposed a common BRICS currency in the past, the idea did not advance.
Founded in 2009 by Brazil, Russia, India, and China, BRICS later added South Africa and recently expanded to include the UAE, Iran, and Indonesia. Enhanced cooperation between India, Russia, and China has been prompted in part by Trump’s sanctions and warnings against BRICS-aligned countries.
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