BRICS explores linking payment systems and CBDCs, RBI governor says

Central bank governors from BRICS nations are examining proposals to interconnect domestic payment systems and pilot central bank digital currencies (CBDCs), Reserve Bank of India Governor Shaktikanta Das said on Tuesday.

The initiative, discussed during a BRICS finance officials meeting, seeks to enhance cross-border transactions among member states while minimizing exposure to U.S. dollar-denominated systems, Das told reporters in New Delhi. No formal agreements were announced, and details on implementation timelines or technical frameworks remain under review.

The move reflects broader efforts within the bloc to strengthen financial autonomy amid geopolitical tensions. Brazil, Russia, India, China and South Africa—collectively home to nearly 40% of the global population—have previously explored alternative payment mechanisms, including the New Development Bank’s proposed local currency settlement framework.

Das did not specify which countries would participate in pilot CBDC projects but noted that discussions are ongoing. The RBI has been a vocal advocate for digital currency adoption, having launched pilot programs for a digital rupee in retail and wholesale segments since late 2022.

Analysts say the push could accelerate if major economies like China and Russia, which have already tested digital yuan and digital ruble pilots, align on interoperability standards. However, challenges remain, including regulatory harmonization and varying degrees of CBDC development across member states.

The BRICS bloc has grown to include 10 members since its expansion earlier this year, with discussions on financial integration expected to continue at future summits.